The Ibex only needs a 1% to reach the desired 10,600 points

The Ibex 35 has managed to increase its earnings after closing practically flat this Tuesday. The index has finished the session with a rise of 0.51% and it has managed to climb over the 10,500 points (10,520). The index still rises and gets closer to the resistance of the 10,600 points.

Aena has led the earnings this Wednesday after rising a 2.42% followed by the main electrical companies. Iberdrola has followed with the second highest value (+2.04%) followed by Acciona +1.97%) and Endesa (+1.92%).

On the other hand Acerinox has been the lowest figure after dropping a 1.65% in the session. It was followed by ArcelorMittal (-1.21%) and Banco Sabadell (-1.04%).

In the main board, Duro Felguera in spite of leading the rises during the session, has finally fallen a 1.73% after extending the time to reach an agreement with creditors. until the 15 of April.

EUROPE AND THE US

The euro is still news. This morning it has listed levels of 1.2263 dollars, close to the Monday high of 1.2296, its highest level since December of 2014. At the close of the Ibex it’s listing at 1.2227 dollars. The currency is the only one that is maintaining close to the three year high, facing the expectations of the European Central Bank (BCE) it could go quicker than expected in its withdrawal of stimuli and its plan to raise rates. Also, the currency is on the lookout of any news related to Germany and the government agreement. At the moment it’s known that the social democrats in Berlin are opposed to the pact with Merkel.

The red numbers have shown on the European stocks again this Wednesday after the losses of the last sessions. The Ibex has been the highest riser, followed by the Dax 30 (+0.18%). On the other hand the Footsie 100 (-0.3%)and the CAC 40 (-0.07%) close in red.

In the US, new records have been broken after the close of the New York stocks yesterday. The Dow Jones has managed to break the 26,000 points record although at this time it’s listing at 25,920 points.

In the business front, the results from Citigroup’s accounts in the fourth quarter of 2017 have been posted, a period where it lost 18,300 million dollars due to Trump’s tax reform. Also, there will be a close eye on the bankruptcy of the British building company Carillion and the consequences of it, since thousands of small companies (and not so small) that work for it are now waiting to see if they will be paid. The building giant that employs 43,000 people in all the world went into bankruptcy this past Monday with debts of approximately 1,500 million pounds (2,000 million euros).

As for the agenda of the data of the day, the harmonized German IPC of December has gone up a 1.6% in line with what was expected. The UK’s IPC has gone up a 3.0% as expected.

TECHNICAL ANALYSIS

The Ibex has closed far away from today’s highs given the fact that it has managed to reach the 1’.573 points, getting closer to the resistance of 16,000 points. According to José María Rodríguez, technical analyst of Bolsamanía we have added up eleven consecutive sessions without closing under the previous session, this means there is “no sign of weakness inside the rising movement that began at the start of 2018”. Nevertheless the analyst points out, “We are still in the same position as a month ago or four months ago” because if the index doesn’t go over 10,600 points “we don’t have anything”.

Rodríguez also adds that over those 10,600 points we would have a great potential of a double bottom that could take us to the 2017 highs of 11,185 points. The expert in Bolsamanía different to other sessions in which the earnings were due to the banks has said that “we have presented a clear rotation of money towards the electric companies”. In José María Rodríguez’s opinion “this movement is good, and healthy”, although he still waits for Inditex and Telefónica to catch on.