 Hello and welcome to the chart of the week video with me David Madden Today's date is Wednesday the 16th of January 2019 and the time has just gone 1140 GMT This week's chart of the week is the Ibex of the Spanish 35 of Spain 35 as we call it on our platform Taking a look at the price action on the market in the back end of 2018 We can see there's been a very obvious downward trend nice example of a series of lower lows and lower highs Yes, I'm fully aware that the high in December managed to just about take off the high of November But as we can see the subset the sell-off that we saw Surely after that managed to print a fresh low and that managed to take out the October lows And in fact the low in December Was the lowest level seen since August 2016, so I give you indication of how bear a sentiment was just after Christmas time Since late December global equity markets have managed to rebound We could see a fairly decent bounce back in the Ibex here But notice how it's running into resistance at this blue line here at the fifth-day moving average Which comes into play at 88 76 Now if you notice if you kind of track the track the marks performance against the fifth-day moving average in recent months We can see it didn't manage active resistance in the in mid-December Also in November October and also in September back in September here Granted it did manage to trade above it as and And then and then sell off sharply below it again in early December But by and large in the last few months this metric has managed to act as a as a ceiling or as an area of resistance For the Ibex now if that continues to be the case We could potentially see the market turn over on itself and Taking a look at the price action here whereby the market is trying to get above the fifth-day moving average But quite can't quite get there We can see that the positive momentum on the MACD indicator is actually declined So the market is trying to push higher it can't get above the fifth-day moving average and guess what on the MACD histogram We're seeing that positive momentum is in decline ever so slightly cooling So we could see the market turn over itself yet again, which would be In line with the wider negative trend we've seen for many months if we do manage to drop below the most recent Now of 8750 we could be looking any back down towards the 8500 area we saw a lot of consolidation in that region and if you go below that We could be looking heading down towards 80 to 30 if on the other hand the market does manage to Retake and close above and hold above the fifth-day moving average here the next area to keep a mile for will be 9000 it's a big psychological number and if you go beyond 9000 and they're into keep a mile for will be the early December high of 9,260 and if you take out that if you take out the December high back of then look to actually kind of Chained traders opinions above the I could potentially begin to chain traders opinion that about the the downward trend that we've been in for a number of Months because an upward trend is defined as a series of higher highs and higher lows If you are trading the Ibex, please keep an eye out for The Eurozone CPI numbers which are released tomorrow That will give us a good indication of demand in the region as a whole Lately the economic indicators for Spain and the Eurozone as a whole have actually been quite disappointing So there's a lot of talk out there That the Eurozone is going through kind of an economic slowdown So please keep an eye out on the economic news if you can be trading the Ibex 35 And lastly if you have any comments to make on this video or any other videos We've made here at CMC markets, please feel free to leave review on Google reviews. Thank you very much