 Hello and welcome to the CMC Markets video chart of the week with myself market analyst David Madden Today's date is Wednesday the 1st of November and the time has just gone 12 p.m GMT the chart of the week We're going to look at today is the ibex 35 or the spain 35 as we call it on our platform here at CMC despite the sell-off over the summer time 2017 has been a good year for the Spanish for the spain 35 year to date The index is up nearly 13% So looking at the big picture here It has been quite a good run despite the fact that we had a downward trend over the summer time and obviously The political uncertainty from the Catalonia has added somewhat to the volatility of these ibex 35 Taking a look at the market on a bit of a closer level We can see that the ibex 35 is in a fairly clear downward channel, downward trend over the summer time And it was long in its downward trend well before the situation surrounding Catalonia really kicked off But now the tensions surrounding Catalonia have cooled somewhat. We see the market Really make we see the Spanish 35 make a fairly clear decisive break north of the downward channel that it has been in As we can see here from late October the markets broke north of both the 50-day moving average and the 100-day moving average and is now trading at just north of 10,500 Turning our attention to the MACD indicator if you look at the momentum component of it We can see that this positive push higher on the market was confirmed by a size of an increase in positive momentum So therefore we can be more confident that the this upward trend is going to continue as the momentum is clearly with the buyers Taking a look at the moving averages first off the 50-day moving average as the market was in its downward trend The 50-day moving average in late September and also in October did act as a level of resistance To any kind of gains the ibex tried to make but once we see situation change in Catalonia The market managed to break north of the 50-day moving average here And then actually acted as she acted as support and a kind of a jumping off point in the last week or so Turning our attention to the 100-day moving average We can see as the market was drifting lower throughout the summertime in In July the fit the 100-day moving average acted both as support on the way down and then acted as a Resistency kind of cap rallies as the market was trying to gain background As we can see here only last only Early on this week the ibex 35 managed to trade north of the 100-day moving average and the fact that actually opened above it Only yesterday and and now we've we've said it today at a level not seen since Early August so we're talking nearly three month highs here on the ibex 35 Now what does what does all this mean? Could this be the beginning of the ibex 35 playing catch-up with other eurozone indices? It's worth noting that both the Dachshund Germany and the CAC in France have what I've gone on to produce record all-time highs today While the Spain 35 is still languishing behind But could this be the beginning of a of the Spanish market catching up with its eurozone counterparts If this positive move were to continue one potential level of resistance to keep an eye out for will be this price here The August high of ten thousand seven hundred and fifty eight then beyond that we may see We may see some resistance coming to play at the mid-July high of ten thousand nine hundred and twelve And then north of that we could potentially see some resistance coming to play at the at the June high of eleven thousand and forty seven If that was to be the case You would like to see that positive move on the market confirmed by an increase in momentum I think increase in positive momentum on the Mac the indicator down here But if the market turns over on itself Where could the market potentially find support? Well seeing as the one or two moving average and the fifth of the moving average Previous the active as well support and resistance over the last number of months those levels could be significant should the market turn lower The one or two moving average could be to occupy the support which is currently at ten thousand four and seventeen and South of that the fifth of the moving average which previous the active resistance In October and September may practice support And if the fifth of the moving average currently comes into play ten thousand two hundred and seventy four Notice how the market is found a lot of a lot of buying pressure just north of the ten thousand one hundred mark So if the market breaks below ten thousand one hundred that could be an early indication At the market about the turnover on itself again We may look to move south yet again And should we have a decisive break south of ten thousand one hundred this price here We could then potentially target the October low of nine thousand eight hundred and sixty six now if you are going to be trading at the ibex 35 Of the spain 35 as you called it here it is worth it worth keeping eye on the Political situation in Catalonia and Spain because it obviously is quite volatile. Thank you for listening. Please tune in next week