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The market is now entering the final five meetings remaining for the first election contest, with most investors having already voted since last week to “hold back” from any serious investment moves, thus first awaiting data that the ballot boxes will produce the evening of May 21 and beyond… we’ll see. Unexpectedly, in this climate of expectation, total turnover will fall below the average of the last 20 sessions, leaving less clear marks in the sand as to the direction and strength of the short-term trend. . From the daily chart picture so far (the article was written last Thursday morning), the general index is caught testing the midpoint of the short-term bullish “Q” channel at 1,135 at 1,130 points but in no mood to move sharply higher to break through the 8 year highs at around 1,141 points.
A move which, if given the right positive news, can trigger a sharp upside breakout of the aforementioned channel within the range of 1,180-1,200 points or up to +7% from trading prices. current. On the other hand, the area bounded by the lower side of the channel at 1,108 units and the support level of 1,100 units requires a lot of attention. A possible confirmed downward burn of the 1100 base will deal a major blow to the short-term buying camp, paving the way for prices to fall into the 1055-1020 area. general index loses the schematic scepter of 1,000 units, leading to intense liquidations and significant changes in investment tactics in equity portfolios. Of course, this could only be caused by an unpleasant political event since the international environment is not right with European markets receiving prices at historic highs.
Moving on to x-raying the power of the general index, we find that now only 8 companies control 50% of its movement. Coca-Cola HBC with a weight of 10.14%, Piraeus with 6.98%, Jumbo with 6.04%, Ethniki with 5.85%, Eurobank with 5.60%, Mytileneos with 5.45%, PPC with 5.01% and OPAP with 5%. In the last upward movement of the General Index of +4.4%, the most negative surprise is that of the action Mytilene (MYTIL), where under the pressure of institutional liquidations it lost -9.82%, giving prices in the important support zone of 25.50 to 25 euros. On the contrary, a positive impression is caused by the rise of Jumbo (BELA) to third place in the ranking, its share recording an upward movement of +13.75%, even reaching new all-time highs at 22.76 euros. . Note that the group goes for the eighth consecutive month of increase from 13.15 euros to 22.76 euros or +73%. Coca-Cola HBC (EEE) has a positive short-term price of more than +11% with its share at the 30 euro threshold and the two banks Ethniki (NTE) and Eurobank (EUROB) with their shares respectively at short distance from multi-year highs. With strong bullish scrolls from their pattern so far, we encounter Piraeus and OPAP, as PPC stock wants to break through the thorny resistance zone at 8.50-8.64 Euros so that it can finally see the share price increase in capital to 9 euros.
The FTSE/ATHE Large Cap Index over the past few sessions has broken on the upside both the resistance zone at 2,670 points and the short-term downtrend line “L” at 2,700 points, releasing pressure. space for the Bulls to make an eventual checkmate. to a high of 2,795 units. So there, if an upward breakout is achieved, the data will change drastically as there is no substantial resistance in the path of the index to the 2,950-3,000 unit area. This is why most analysts point out that if the political bogeyman goes away, the market upside is more than strong. To be able to say here that the scenario in question is on the right track, the index should break below the level of 2,670 to 2,655 units.
I end with the banking index which seems in view of the electoral battle that it will willy-nilly climb the barrier of 900 units to continue towards the upper limit of resistance of 955 units. As if there was a sign on the fence “Beware the dog bites”. However, the previous high recorded on the daily price chart is 955 units. A safe passage above there without political “bites” will also give the investment points of support for the conquest of 1,000 units in the banking index. Here, the point that requires special attention to avoid landslides is at 815 units.
* Apostolos Manthos is responsible for technical analysis and investment strategy
** Republished from Kefalio newspaper
