IBEX 35 Forecast October 18, 2012, Technical Analysis

By FX Empire Analyst - Christopher Lewis
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Spanish stocks do quite well during the session on Wednesday as the world continues to think that the Spanish government is getting close to asking for a bailout. Because of this, financials will do especially well in the IBEX as they are by far one of the largest purchasers of the Spanish that.

Looking at the charts, we can see that the €8200 level is an area that should become resistive, but since we finished the session on Wednesday at the very top of the range, we do believe that it will give way. On pullbacks, we would be interested in buying Spanish banks, as well as a breakout above the aforementioned 8200 level. As for selling, we simply would not do it right now unless there was some type of announcement that Spain was absolutely positively not going to ask for a bailout.


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