The Ibex35 index (reference benchmark of the Spanish stock market) has been fluctuating sideways for over three months within a horizontal channel bounded by resistance at 9,700-9,750 points and support at 9,200-9,170 points.
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The short-term technical situation therefore appears contrasted, even if the analysis of the main oscillators indicates a marked contraction in volatility, a situation that often anticipates the start of a fast directional movement.
From a graphical point of view, however, only a breakout of 9,750 could provide a new bullish signal of a directional nature and open up further room for growth (with theoretical projections to 9,870-9,880 first and towards the psychological threshold of 10,000 points later).
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Instead, a descent below 9,170 points would be dangerous, as it could trigger a rapid correction that would have a first target at 9,050-9,045, a second target near 8,900 points and a third theoretical projection in the 8,730-8,700 area.
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The following ETFs can be used to invest in the Spanish stock market:
Amundi MSCI Spain, ISIN FR0010655746. This ETF has €44m in assets under management, synthetic replication of the underlying (via a swap) and adopts an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.25% per annum.
Xtrackers Spanish Equity C, ISIN LU0592216393. This ETF has €40m in assets under management, physically replicating the underlying (buying all the components of the Solactive Spain40 index) and adopting an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.30% per annum.
Xtrackers Spanish Equity D, ISIN LU0994505336. It is an ETF with €5m in assets under management, which provides for the physical replication of the underlying (by purchasing all the components of the Solactive Spain40 index) and which adopts a distribution policy (with dividends being distributed annually to investors). The total expense ratio (TER) is 0.30% per annum.
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Reproduction prohibited in any form, even partial
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