Summary:

• The SPA35 has risen to a 7 week high today
• The market recently broke out of a consolidation pattern to the upside
• Outlook looking more positive for bulls

The leading Spanish stock market (SPA35 on xStation) has been one of the best performing in Europe so far in 2017 with year-to-date gains of almost 15%. There has been a strong improvement in the country’s economic data of late and after closing the gap higher from the French elections, the index could be set for further gains.

 

 The SPA35 is looking to rise once more after closing the gap higher from the French election. Source: xStation

The market peaked at 11233 back in early May and since then there has been a prolonged pullback which has now seemingly ended with price breaking above a falling trendline from this peak. The market made a clean break higher last Friday on a swathe of rising global optimism meaning the breakout was confirmed on both daily and weekly charts. Price is currently testing 10764, a region that had previously acted as support and it may be worthwhile watching closely here to see if there’s any selling pressure. A move above here would pave the for further gains with 10979 and 11233 possible in the coming weeks should the rally take hold.