No one of the financial agents doubts that the selective index of the variable income, the Ibex 35, is in a clear trend of laterality. That is to say, in no man's land as long as the support and resistance levels that are taking a lot to knock down are not exceeded. Meanwhile, it is very complex to carry out the operations to realize the savings, unless the trading operations are experienced. Although no one doubts, that sooner or later, you will have no choice but to take one or another position on the buy or sell position.
Within this general context, we are going to explain what investment strategies you can import from now on. So that in this way, you are in a position to optimize your operations in the equity markets. Where the fears of an economic recession at the international level, there is no doubt that it will play a fundamental role so that the stock market indices follow one or another trend. So that the national stock market can get out of the current state of laterality in which it has been for many months.
It should also be noted that as long as these levels are not exceeded, there is nothing for small and medium investors to do. And that in its lower part are established between 8700 and 8600 points and in the bullish part of the channel in the vicinity of 9300 points or so. They are, in any case, the levels that will have to be monitored from now on. In order to open positions in one direction or the other and not be limited to such short operations that are generated in laterality channels such as the one we are currently facing.
What to do when media breaks?
If in the coming days or weeks there is an intense break in the trading volume of the selective index of Spanish equities, the Ibex 35, it will be the occasion that we all wait to sell our positions on the stock market. With a total withdrawal for a very clear reason and that is that we will already have opportunities to buy the shares at much more competitive prices. So that in this way, the potential for revaluation is much higher than until now. That is, to significantly increase capital gains in open operations in financial markets.
This investment strategy carries very few risks, but above all it will help us protect our savings from the instability in equity markets. Beyond other considerations of a technical nature and that now do not enter or are part of our analysis of the support and resistance in the Ibex 35. Not surprisingly, this situation could lead the Spanish stock market index to explore the 8000 level points or even lower bounds. With an evident risk in our positions in the equity markets.
Take down the resistance in the bag
While on the contrary, the opposite movement, that is to say exceeding the resistance level that the Ibex 35 has at the moment is a clear signal for come back shopping to the Madrid parquet. Because in effect, it can become a level where you can resume investments in equities. Fundamentally because the risks will be lower and will be much more nuanced than before. In this sense, it cannot be forgotten in any respect is when a resistance is exceeded, it becomes support from that resistance.
Moreover, after easily overcome a resistance very loosely, the usual thing is that there is a very strong buying pressure. Where the interest on the part of the small and medium-sized ones is very accentuated, at least during the following weeks in which this performance has taken place. And that can be used by savers to take positions and make profitable these special movements in the values that are going through this situation. Where a rule of thumb is that there is more to gain than to lose.
When false movements occur
It can also happen, although it is not the most common, that these movements in the conformation of prices are false. This means that return to their original positions and therefore there is no breakage of the supports or resistances. And in which case, the strategies we discussed above will be worthless. If not, on the contrary, it will be necessary to undo the sales or purchases, respectively, since it can entail excessive risks in the operations. Beyond other technical considerations and maybe also from its fundamentals.
Another aspect that small and medium-sized investors should value is the volume of contracting. Because indeed, these movements are frequently accompanied with procurement volumes very high and they are the ones that give validity to the breaking of the supports and resistances in the technical analysis of the stock market values. With high reliability regarding the results of this very particular system and which is followed by investors who have a greater learning in this class of operations on the stock market.
Detect them in time
Finally, it should be noted that it is very important to arrive in time for trend changes in values. Because if they are detected late it will be impossible benefit from these scenarios to make the money invested profitable. Which is at the end of the day what is involved in this kind of investment strategies. Not surprisingly, the agility in the movements is completely decisive to generate the widest possible capital gains at all times.
For this, it will be relevant to have a graph at hand to know what is happening with the stock values at every moment or at least in every session in the equity markets. With greater possibilities to achieve our objectives in an effective way and if it can also be risk-free. Without fear of mistakes of special relevance in investments.