• 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.

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 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.