IBEX 35 Index Futures Forecast December 19, 2012, Technical Analysis

The IBEX rose during the Tuesday session as we popped over the €8000 level in order to make a serious run at the €8200 level. We are approaching the €8200 level now, and this is a significant spot on this chart. If we can get above €8200, is very likely that we will see much higher prices in the future.

The time of the year suggests that we could have a low liquidity, and this may or may not work in the favor of the buyers. This also could lead to a false breakout, but we must simply take the chart for what it is, and that’s bullish. However, it we would be remiss to suggest that buying here is smart, after all we need to get over that barrier in order to be relatively confident.

Going forward, a daily close above the €8220 level is enough for us to go long. As for selling, we have no real interest in doing so now that we have seen so much bullishness over the last several sessions.