IBEX validates Elliott Wave with spot-on blue box reaction

💡 DMK Insight

So, the IBEX is showing some interesting movement based on Elliott Wave analysis, and here’s why that’s crucial for traders right now. The rally from the April 7, 2025 low suggests a strong impulse structure, which typically indicates a continuation of the trend. For day traders and swing traders, this could mean potential entry points as the market builds momentum. Keep an eye on the key resistance levels that might emerge as the rally progresses, as these can serve as crucial indicators for profit-taking or stop-loss placements. However, it’s worth noting that impulse waves can also lead to sharp corrections. If the IBEX starts to falter and breaks below recent support levels, it could signal a reversal or at least a pullback, which would be a critical moment to reassess positions. Traders should monitor the 1-hour charts closely for signs of exhaustion or divergence, which could indicate a shift in momentum. Watch for any news or economic indicators that could impact the broader European markets, as these can have ripple effects on the IBEX as well.