IBEX to gain, as recovery gathers pace

This week's data from Spain, Europe's fourth largest economy provided further evidence that economy is gathering pace with recovery in employment.

• Today's employment statistics indicated that in April another 118,900 people joined payroll. This gain is highest since July last year and surpassed average estimate of 64,000 gains.
  
  
• Monday Markit economics released its PMI report that showed Growth was slower compared to prior but PMI still stands at 54, second highest in Euro zone only second to Ireland.

• Underlying trend indicates that domestic demand is picking up as well as export orders driven by weaker Euro.

Spanish benchmark stock index IBEX (ESP35) is currently trading around 11380 level, far from its pre 2008 crisis high.

Possibilities are high that recovery in Euro area and Spain would lead stocks to pre-crisis level. IBEX is rising with solid trend line support since 2012, Euro zone crisis low. Long term trades are recommended.

Key supports to consider 11200, 10800, 10400.