You Can’t Buy In The Resistance Zone

The main world stock exchanges have been developing a significant upward movement in recent weeks with rises of around 7-10% from the lows they marked at the beginning of October.


This has enabled the indices on both sides of the Atlantic to go from being in a support zone to trading at the moment in a resistance zone, this is an environment where I am more in favor of collecting partial benefits, in the strategies that weeks ago I recommended opening in Ecotrader in numerous values, taking advantage of the falls towards supports, than to make new purchases.


For the latter, I prefer to wait well for an adjustment of part of this rise to form, or for key resistances to be overcome both in Europe and on Wall Street.


The resistances that I suggest to monitor are the one presented in Europe by the German DAX at 15,815 / 16,000 points and in the United States it is clear to me that to trust in a sustainable upward context over time it is necessary for the Russell 2000 to be able to beat the ceiling of the lateral range which has been limiting its lateral consolidation since March, for which it should beat resistance at 2,350 / 2,366.


In both cases, it would be necessary to attend increases of 3% to overcome these resistances and this is precisely the margin of rise that we could still have short. Overcoming these resistances would remove the risk of attending a broader consolidation that I do not rule out that could lead the stock markets to seek the October lows.

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