"Shock Waves and Expansion" Forecast IBEX35 - 2021: 10,409-12,380 points.
"Taking into account the positive trend of the 4 macro-circular magnitudes, the Ibex 35 should have no problems reaching 10,409 points as an initial target, and may reach 12,380 at the end of this year or before the first quarter of 2022."
Study by Jorge Vendrell that will be part of his next book entitled: "THE SHOCK WAVES AND THE MAPS OF THE TREASURE" Appointment required by copyright.
"The Shock and Expansion Waves", are based on a novel system of technical analysis that I have created to identify, from the base, both the bullish and bearish trends of any stock market in the world, being reserved for the "Circular Macroeconomics" to explain, through its fundamental magnitudes: GDP and employment and their accelerators, the movements that cause the rise or fall of the markets.
In 1993 a bullish guideline began that ended up causing a "Shock Wave" that gave rise to the all-time high of 2007 at 15,945 points.
As a reaction to the "Shock Wave", there was a bearish "Expansion Wave", inclined green line "e", which has been returning prices to consecutively lower levels for 14 years, slowing down any attempt to cross its iron resistance.
During all this time, the continuous falls in prices have bounced upwards on the supports of the mixed guidelines 7 and 9, which at times have also acted as resistances putting an end to the price escalation, before facing the Expansion Wave "e".
Shock and Expansion Waves foresee both ups and downs, so the path of the market in one direction or another will basically depend on the "Macro-Circular" analysis based on GDP and employment and their respective accelerators. Thus, when GDP and employment are positive, the general trend in the stock market will be upwards, and when they are negative downwards. But ups and downs are not eternal, prices need to digest the escalations, which will have to face resistances and technical supports as a result of the past evolution of prices, testing the strength of both uptrends and bears.
Identifying supports and resistances from the beginning of a trend is the alchemy to which any stock market prediction system aspires. So far no system has succeeded, although the "Shock and Expansion Waves" seem to be on the right track to achieve this.
"SHOCK WAVES AND EXPANSION": PREVISION IBEX 35 - 2021
In 2020 with the outbreak of Covid-19, prices plummeted to the black b-c bullish guideline, which acted as support bouncing from 6505 points. In my May 12, 2021 report titled: "J. Vendrell's Prediction that the IBEX 35 would reach 9100: IT HAS BEEN FULFILLED!" celebrated that the recommendation I made on December 1, 2020 to buy IBEX at 6660, and sell if it reached 9100 points had been fulfilled. The upward path was suddenly slowed in the resistance zone I predicted, re-imposing sales, and returning prices below the main resistance that marks undaunted the "Wave of Expansion e".
The excessive increase in inflation falls on the European Commission, which should paralyse the CO2 tax system if it does not want to generate a crisis such as '73.
The data released on Friday, July 30, that gdp in the 2nd quarter had grown by 2.80% exceeds by 0.51 percentage points the "METAPIB"of 2.29% that I had calculated for the 2nd quarter of 2021 and that I first disclosed in the report "The METAPIB: The best way to predict and evaluate the GDP of the G-20" on July 18, 2021.
"Everything indicates that in the month of August the IBEX will try a new assault on the resistance in force for 14 years."
Recommendation IBEX-35 2021
My recommendation to those who sold on the bearish guideline on 8800-9100 is to buy at current prices, and take advantage of the falls towards resistance 7960 to accumulate.
"Although nothing is written, and anything can happen, taking into account the upside break of the DAX, and that of the CAC-40, which I predicted in the reports: According to the "SHOCK WAVES" the German DAX could climb in 2021 to 19,361-21,670 points, and SHOCK WAVES: The French CAC-40, about to break its resistance upwards after 20 years of validity,everything suggests, that the IBEX-35 will be able to cross its resistance. If we also take into account that the "macro-circular" data formed by GDP, employment and the accelerators of these will all be positive in 2021, and that according to my current estimates gdp will grow around 5.73%, we would have to add to the favorable technical analysis that emerges from the Shock Waves, the more than positive macro-circular data that will be released in 2021."
"Taking into account the positive trend of the 4 macro-circular magnitudes, the Ibex-35 should have no problems reaching 10,409 points as an initial target, and may reach 12,380 at the end of this year or before the first quarter of 2022."
The disproportionate increase in inflation falls on the European Commission, which should paralyse the CO2 tax system if it does not want to generate a crisis such as that of '73 and bring the European economy back into recession.
More information at:
Jorge Vendrell – World Economy Development Center