Remain long with #IBEX35 | 21 January 2022

 #HSI weekly

Technical observation

Last week #HSI rose with a big green candle but did not reach the resistance zone it established at 25784-25998, this week I expect a further rally to the same zone followed by a possible bounce within it to pick short positions with my take profit at 21626 and stop loss at 27040. In case of a clear breakout below the key level 21626 with a big red candle, I expect the value of this company’s shares to surge further towards the lower supportive level 18064, on the other hand, should there be a clear breakout above the zone mentioned above with a big green candle I expect the value of #HSI to ascend towards the level 29375.

 Trade recommendation

Wait for a correction to the zone 25784-25998 to sell #HSI.

#NIKKEI weekly

Technical observation

The past two consecutive weeks #NIKKEI traded with an increasing bearish momentum, this downwards movement is a pullback to the supportive zone indicated at 27529-27234 and I expect a loss of it within the same zone to pick long positions with my take profit at the resistance level 30711 and stop loss at 25643. On the weekly chart above, as long as the value of #NIKKEI remains above the zone I mentioned earlier, I expect nothing but bullish movements; however, in case of a clear penetration below the same zone with big red candle, bearish momentum can be anticipated after a correction to the broken zone and rejection within it.

Trade recommendation

Remain flat.

#IBEX35 weekly

Technical observation

 Since it bounced within the supportive zone 8115.3-8000.9, the value of #IBEX35 has been rising steadily for four consecutive weeks and as long as it remains above this zone, I expect a continuation of this bullish momentum to the resistance level 9595.8 followed by a possible break above it with a big green candle. If you picked long positions within the zone mentioned above after a bounce, remain in the trade with your take profit at 9595.8 and stop loss at, however, if you are currently neutral with this index, wait for either another correction to the zone 8115.3-8000.9 and buy a bounce within it, or a clear break above 9595.8 to pick long positions.

 Trade recommendation

Remain long with your take profit at 9595.8.