As we have already published some bullish reports on the FTSE, CAC, DAX and Euro Stoxx recently, today we are looking at the IBEX index. Below we have two charts of the Spanish benchmark index, both displaying clear bullish patterns. The monthly chart shows that the IBEX has been in an upward trend since bottoming out in 2012. In recent months, the index has consolidated in a relatively tight range below the 11200 handle, suggesting that it may be gearing up for a potential breakout towards the long-term 61.8% Fibonacci retracement level of the downswing from the 2007 crash, around 12160. On the daily chart, one can see that it has recently broken above its main moving averages and also a bearish trend line. The breakout was confirmed once the prior high around 10745 was cleared (area circled on the chart). It has since been moving higher and is now not too far off that 11200 handle. A decisive break through this level could target 11750/60. This is where the 127.2 and 161.8 per cent Fibonacci extension levels of the last two downswings converge. From there, it may pullback a little bit on profit-taking before potentially pushing higher again towards that long-term 61.8% Fibonacci level (see the monthly chart). Meanwhile a potentially bearish scenario would be if the index fails to crack this 11200 yet again. But the bulls will only be concerned if the index also goes on to break support at 10930. If it does, then it may push back towards 10745 before deciding on its next move.
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