Weeks ago I pointed out that I was putting my hand on fire because before the end of the summer we were going to witness a correction of the stock markets close to 10% from its last maximum and I dared to say that I was not going to burn.
Well, if we look at the other side of the Atlantic, where the North American indices ended the month of June marking new all-time highs , I’d better buy some fire-retardant gloves, although it is true that there are still weeks until the end of a just started summer period.
Now, if we analyze the evolution of the European stock markets, the situation changes radically since the candle patterns displayed by the main indices of the Old Continent are potentially bearish and warn us of a clear buyer exhaustion that, for now, has caused the Ibex 35 has corrected from its last maximum that it marked at 9,310 points by 6% , after reaching 8,800 points.
If the Spanish selective loses this support of 8,800 and the EuroStoxx 50 yields the one found at 4,040-4,050 points , a more corrective than a consolidative scenario would be activated and we would have to look at a possible fall to the May minimum zone that the EuroStoxx 50 scored in the area of 3,855 points .
A fall to that environment would be an unbeatable opportunity to buy back the European stock market with a medium / long-term vision and I would dare to say that that would be like attending the classic summer sales , since from that environment I understand that another could unfold. great upward movement that would lead us to have a bullish final stretch of the year .
In this market context and with the exposure to the stock market that we have recommended in Ecotrader , around 70%, we are very comfortable and would only be in favor of making new purchases if that expected correction takes place. If the market continues to rise as it has been up to now, as I will not tire of repeating, it will be necessary to enjoy the purchases made over the last weeks and months.
Summer begins with shooting stars
‘Summer begins with shooting stars’
For new purchases, the recommendation is to wait for the summer sales to appear. For example, within the Spanish market I am already beginning to detect a series of securities that have either already reached very attractive areas to buy or are very close to them. Let’s see some of them.
In the heat of the news about the reopening of the main economies of the planet, the price of IAG has been consolidating positions for months in a movement that has served so that the title has eliminated its overbought. Furthermore, I see this movement as a simple pause prior to a continuation of the upward reconstruction process that was born at the lows set by the value in the 1 euro zone .
The scope of the environment of 1.90-2 euros is a magnificent opportunity to get on its bullish flight in search of next objectives in the 3 euros and with an eye on more ambitious objectives such as 5 euros, where it was listed before the appearance of the first falls generated by the arrival of Covid-19 to the Old Continent.
ACS is another security that has reached a very interesting support and potential turning zone, 22 euros . In the worst case, the firm chaired by Florentino Pérez will fall to 21 euros. Buying at 21-22 euros is a bargain typical of the summer sales . Especially considering that it seeks increases towards 27.25 and then more ambitious objectives such as 34 euros, which are the historical highs of the title of the year 2019.
Another of the titles that in the last fall has been very close to reaching a support zone whose scope would be a historic opportunity is Acciona .
If sales take the value to the support of 116-119 euros , do not hesitate to buy in search of first targets at 142.90 and 150 euros , whose breakdown would place it in an absolute free rise, which is the most bullish technical situation that exists.
Pharmaceutical Reig Jofre is the latest strategy that we have recommended to open in Ecotrader . We are talking about a narrow value in which you have to buy only if it returns to levels where it was trading at the end of last week around 4.80-5 euros , which is where we suggest taking positions . Everything indicates that the bearish phase that Reig Jofre has been developing since February, which has led to the title from 6.35 to 4.65 euros (26.50% drop), has ended.
It is likely that in the area of 4.65 euros , which is the base of the channel that limits the latest falls and that coincides with what would be a 38.20% Fibonacci adjustment of the entire rise from the lows of March 2020, the foundations of a floor are being laid from where it can resume its main upward trend in search of initial targets at 6.30 and then more ambitious at 8.50 and 10 euros .
Since the last peak Inditex marked at 32.90 euros, its price has corrected by 10.60% after reaching 29.39 euros last week . Depending on whether it corrects in a similar proportion as it did in January or March, we would see falls to 28.20 or 28.85 euros . Purchase orders can be placed there .