With the index then standing at 8376, I suggested risk-tolerant traders should buy in expectation of a likely break above the 8665 resistance marker. My notes highlighted the reasons why a break above 8665 would open the door to an aggressive, eventual target band defined as 11,730-11,810. This break did indeed happen, and in my follow-up note in August I recommended that IBEX had now become a full-blown buy.
The advance which triggered my buy recommendation finally exhausted itself following a move of around 14%, and has subsequently unwound some very overbought tendencies. This is healthy and entirely normal, the pull-back having taken the index down by a Gann-inspired 6.25%. Importantly, the process of unwinding this excess has displayed all the characteristics of being a mere staging post before a resumption of the IBEX's dynamic new uptrend. A break back above 8739 should be considered the trigger for such a move.
Once 8739 is dispatched, the next staging post will be the important G2 level, positioned at 9435. There will probably be some sideways churn around this level – possibly in a band defined as 9435-9840 – and nimble traders may wish to take short-term profits at this level. More patient investors should ignore this churn, however, and await the full potential of this trade to deliver.
Recommendation: buy or stay long. Ultimate target 11,810. Profit-taking opportunities will occur along the way at 9435 and 9841, enabling traders to buy back cheaper. Stop-losses can be activated on momentum beneath 7870.