The market thinks about it

By Apostolos Manthos

The general index of the Athens Stock Exchange, after an upward rebound of +8%, sits in the last sessions exactly in the middle of the downward path it achieved last March from its highs of 1140 points to 998 points and thinks about …. It is not expected that the meetings will give The three following this week the necessary character that the chart analysis wants to take the right path more safely, thus determining the path of the short-term trend. The Easter holiday has already caused the first slowdown in overall market turnover since last week, leaving no clear signs of a continuation. And in the daily price chart, we find that the index passed above the resistance area from 1060 to 1055 units, but without declaring that it has the fuel needed to move upwards strongly, and dissolves along the way the resistance that was recorded at 1100 units. We are talking about a price level that, if breached with strong trading turnover, could open the door wide to record new 3,000-day highs, easily surpassing 1,150 points.

Of course, the weakness of the appropriate driving force will cause the index to stabilize sideways or move downwards sideways, once again testing the elasticity of 1055 units. An area that will mainly need more attention from active investors in the short term, as it can with proper ‘push’ roll towards the chart area of ​​1,020 units, thus forming a problematic second local lower high around 1,080 units. Turning now to the x-rays of the capabilities of the general index, we find a significant change in the top heavy index companies. The entry of the Mytilineos Group for the first time in its history into the top three “organizers” of the general index, with a weight of 6.12%. Indeed, it is this strength that has overtaken Piraeus II (6.74%), threatening to overtake it, leaving it in third place in the table.

Coca-Cola HBC (EEE) remains in first place and at a safe distance, with a weight of 9.64%, however, as can be seen from the bi-weekly price chart, it has broken the resistance area at 24.80 up after almost 400 days in the euro. This achievement has now paved the way for an upward movement towards the level of 27.70 EUR, which was also the reason for the free fall of the stock after the start of the Russian-Ukrainian war. The chart picture so far seems to support such a move, backed by the fundamentals, as the group has now amply demonstrated that it has overcome the negative element caused by the geopolitical crisis, and is moving several steps forward. The bullish takeover of 27.70 EUR will give, due to the weight of Coca-Cola HBC, important points to the general index.

In the meantime, Piraeus Bank stock (PIR), after the strong bullish reaction caused by the bearish connection with the upper side of the long-term channel “C” and the formation of the triangle support “T”, found itself again above the 2 euro limit, until testing its strength above the level The important resistance is 2.20 EUR. A move above there again would put Piraeus on an upward trajectory towards the peaks of €2.50 to €2.60. But for the time being, the formation of a short-term negative “grave doji” on the stock’s two-day candle reveals the strength of the strong resistance of the “bears” camp for the upward continuation of the movement. Confirmation in the coming sessions of the formation dynamics will cause the emergence of a possible bearish movement, pushing the share price towards the critical area from 2 to 1.954 EUR.

I conclude with the market champion of several weeks, if not months, the Mytilineos group, which along the way breaks down one charting hurdle after another. Thus, after an upward split to form a “flag” (flag pattern) at the highest levels of last October’s movement between 25.50 and 23.10 euros, the stock quickly crossed 27 euros and is heading towards the area of ​​28 to 30 euros. However, the intensity of the upward movement led many of the slow technical momentum oscillators to reach a ceiling, looking for a form of initial de-escalation to the downside, without this of course indicating that it will show itself in the upcoming sessions. However, statistically speaking, at more developed stock values, oscillators, despite the super overbought state they are in, can continue to “draw” the ceiling for a significant period of time.

* Apostolos Manthos is responsible for technical analysis and investment strategy

** Republished from Kefalio Newspaper