IBEX 35 Index Futures forecast for the week of December 10, 2012, Technical Analysis

The IBEX 35 Index had a fairly benign week over the last five sessions as we continue to go sideways. The €8000 level continues to be far too resistive for the market to overcome, and above that is even more resistive €8200 level. With this in mind, we are not interested in going long in this market quite yet as it looks like there’s still some work to do for the buyers.

Alternately, the market looks fairly well supported at the €7800 level, as well as the €7600 level. Because of this, we feel that this market is simply too tight for longer-term trader to be involved with right now. A break below the €7600 level would have us selling for a longer-term period though as would a break above the €8200 level has us buying for a longer-term trade.