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Along with other global share markets, the IBEX has been through a corrective phase throughout the first-quarter of 2014. Importantly, however, it has not broken below my downside support at 9841. The index recently managed to regain the ground above isolated resistance at 10,010, suggesting that it may be priming for the next period of upside momentum. The level of 10,010 represents a 33.33% rise from the secondary low in June 2013, and a clean break of this level allows me to project ahead to a future target at 12,512.
In my last update in mid-February – when the index stood 211 points lower – I suggested the trading range 9435-9841 appeared over, but the key to any renewed advance was its ability to remain above 9841. This is looking more likely by the week.
Recommendation: stay long. Target 11,810. Stop-losses can be maintained and activated on momentum below 9600.