Looking for strength? The banking sector is the support of the Ibex 35
“The Ibex 35 is the one that is doing the best in Europe and we do not see any danger, for now, if it does not lose 8,750 points. The selective Spanish does not lose important levels thanks to the banks and the German bond that continues to fall. Although none of the indices will be able to hold if there is a medium-term correction starting on the Nasdaq, ”explains independent technical analyst Roberto Moro.
“I still like the banking sector, the luxury sector, which was one of the best doing in Europe, has also been hit in the short term by the falls in this Tuesday’s session … I would stay with the banking sector and with Mapfre in Spain and in the US the insurers AIG, The Travelers Companies or UnitedHealth Group and the banks JPMorgan Chase, Goldman Sachs… although I don’t think it is a good time to buy ”, he adds.
In fact, Wall Street investors are seeing more opportunities in this context in the more cyclical and traditional sectors of the economy than in growth stocks, high tech companies or renewables that did the best over the past year. Income 4 analysts point out that the falls these days occur “in a context of notable rises in raw materials that reinforce the fear of higher inflation and continue to push the reflationary movement”. During this week, precisely, the market is waiting for the inflation data corresponding to the month of April in the United States.
The banking sector listed on the Ibex 35, that is, Banco Santander, BBVA, Caixabank, Bankinter and Banco Sabadell weighted 18.95% in the Spanish selective, which still shows the strength that the sector continues to have despite the departure of Bankia or Banco Popular in recent years. The Sabadell shares, even though they have the least weight in the index with 0.45%, are the ones that are revaluing the most in 2021 in the Ibex 35 with a cumulative rise close to 87%.
All bank securities listed on the main index of the Madrid Stock Exchange rise more than 20% so far this year, with Bankinter accumulating a 38% rise, Caixabank 31%, Banco Santander 29% and BBVA 23.30% after the significant falls that they dragged on last year. In the accumulated monthly and weekly, despite the noise in the New York Stock Exchange, none of the five banks correct and it seems that their ‘moment’ has come after a horrible 2020.
Technical analysis of the sector
The Investment Strategies analyst José Antonio González highlights the short-term behavior of Banco Santander and Banco Sabadell shares, and also points out that BBVA, Caixabank and Bankinter are listed in areas of resistance that, if overcome, would constitute an attack on the part high of the growing channel in the medium term that they are carrying out from the previous lows last year.
“Banco Sabadell manages to advance strongly in the short term, overcoming important resistance in its wake. This movement is supported by a rebound in trading activity, which enables the long or buy side to update bullish targets towards the projected resistance zone from 0.6712 euros per share, ”says González.
“Banco Santander registers a significant upturn in the very short term, backed by upturns in contracting activity, allowing the price to exceed 3.068 euros per share, extending its structure of increasing highs and lows in time and form, whose next upward target of facing the medium / long term, we project at the height of 3,799 euros per share ”, he argues.