The IBEX 35 remains a relentless underperformer in Europe and economists at Credit Suisse expect it to continue and accelerate even further in the short-term.
Key quotes
“The IBEX never managed to test its long-term 200-day moving average, now at 7801 and has now broken sharply lower from its sideways range and is now already testing the 61.8% Fibonacci retracement of the whole March/June upmove at 6647/586. Next minor support can then be identified at 6421, the May 2020 low. Below here would increase the likelihood of a full setback toward the March 2020 low at 5815 and rekindling thoughts of a more significant multi-year top.”
“Only a rise above 7322 would indicate a more rangebound environment could emerge again, which is not our base case.”
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