SPA35 a new upward trend is starting

Index forecast / SPA35 / Our expectations

Long-term downward trend, the price is making lower tops and lower bottoms. The reason for the index price decreasing were the protests in Catalan and the wish of the district to separate from the country. But for the moment, this problem is gone and we think it's time for the index to join the other european benchmarks and to test new highs. Short-term upward trend, finished with break of the main diagonal resistance, which in fact is changing the middle-term movement to long. The price is breaking series of serious resistances: FiBo 38.2, SMA 200, horizontal and main diagonal resistance and remain above them. Technical indicator: CCI(50) - breaking above level 100 - positive signal. The current levels are appropriate for taking long position. The weakening EUR is another important factor, that can influence positive on the index.

Alternative scenario: if the price pulls back below the zone of support ( former resistance) and again enters into the descending channel, the positive scenario will be dismissed and we can see test of the bottom part of the movement.

SL: 10 000.00

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