Banco Santander May Provide Timing For Stocks To Rally

Banco Santander is the largest bank in Spain and the 5th largest bank in Europe. Traded under the ticker (SAN) at BMAD and NYSE, it is a component of the EuroStoxx50 and IBEX35 market indices. In particular, the weighting of 15% in the IBEX35 makes Santander the component to watch is strongly correlated markets. Indeed, IBEX35 is the index which shows an incomplete pattern to the downside in the long-term perspective. That fact may be responsible for withholding the major world indices to rally. Hereby, the heavy-weight Santander may provide a clue to understanding the structure of the consolidation pattern and the levels to be achieved before an uptrend can be finally resumed. Therefore, Santander can provide the timing for the rally in the IBEX35 and probably all other indices as well.

Santander Monthly Elliott Wave Analysis 06.22.2020

The monthly chart below shows the Santander stock $SAN traded at BMAD. From the lows, the stock price has developed a cycle higher in wave (I) of a supercycle degree. Santander has printed the all-time highs in November 2007 at 13.43. From there, a correction lower in wave (II) has started with a first leg unfolding as an impulse. The 5 subwaves of the impulsive decline in the red wave have ended in March 2009 at 3.67. From the lows, a bounce in red wave b has retraced a large part of the decline. It has ended in January 2010 at 11.44. Now, 5 waves lower and 3 waves higher may be a hint that the consolidation pattern might be unfolding as a zigzag pattern being 5-3-5 structure. As a consequence, one may expect another 5 waves of red wave c to extend lower from the January 2010 peak.

View of the decline, as a matter of fact, provides a case of an overlapping structure. Only the break of the March 2009 lows has proven that the leg lower in the red wave c is in progress opening up the monthly bearish sequence against the 2010 highs related to the 2007 highs. The equal legs extension area towards 1.71 and lower should become the target for the wave c of (II) to end. Once that area is achieved, the rally in wave (III) to the all-time highs towards 13.43 and higher can resume.

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