To be continued nervousness in Athens Stock Exchangewith investors surrendering selective channelsin the midst of trying to defend critics supports 1,400 units.
O short term trend remains low, with the General Index lagging behind 6.5% compared to the year’s highs and lose 5% in the last 30 daysin the absence of internal fuel and in view of the French elections.
On the other hand, it is important that the 1,400 units appear to be “holding out” for now, avoiding a slip to 1,380 – 1,360 units, which would pave the way for “200 years».
In this context, the General index notes imperceptibly drop of 0.03% and is formed in 1,405.76 unitslosing just half a point at Wednesday’s close (1,406.24 points).
O arc of diurnal variations extends over four units (from 1,405.51 to 1,409.00 units), with the volume of business around 3 million euros in the first 20 minutes.
Why losses persist
There are only two meetings left until the end of June and first half on the Athens Stock Exchange, who is now called upon to defend the precious supports of 1,400 units.
Having already had three consecutive low meetings, it is possible that the negative climate will “test” them critical limit forceswhich have remained inviolable since April 19, that is, for at least two months.
Any loss of 1,400 units, according to analysts, will bring to light on the one hand the 1,380 – 1,360 unitsbeyond average of the last 200 days (1,339 points), which is related to the long-term trend.
On the other hand, 1,460 points are still the main resistances of the General Index, which is far from -6.5% compared to this year’s highs of 1,502 units (closing on May 20).
As regards the causes of the ongoing collapse of the Athens Stock Exchange, the explanation concerns a league of negative developmentswhich negatively affected the climate in the short term.
The imposition of emergency taxation of refineries, government pressure on banks on the issue of charges and scenarios of possible intervention by the Ministry of Finance, the absence of positive catalysts, the consecutive dividend cut, the non-AA membership on watch list of MSCI and, of course, the height of political drama in France ahead of the first round of parliamentary elections on Sunday.
All of this limited investment visibility and traders’ willingness to take risks. Hence the short-term downward trend of GD, which in the last 30 days loses -5%, falling below +9% yield since the beginning of 2024.
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However, this folding created attractive entry points in many actions, especially High capitalizationwhich under certain conditions can be used by investors, offering selected support.
At the same time, the end of the semester gives the opportunity to reorganize and portfolio beautification (window dressing), something that traditionally happens in these periods of time.
For losses abroad
Abroad, now, nervousness and restlessness remain dominant characteristics in Europeresulting in the overall index Stoxx 600 headed for another bearish session.
On the other side of the Atlantic, after last night’s bullish close, today’s futures Wall Street predict slightly negative variations in the main indicators, with S&P 500 remain, however, within walking distance of 5,500 units.
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(The text above is the product of journalistic research and does not constitute an invitation to buy, sell or hold any share)