Stock market: National Bank cut the bullish thread

With Ethniki leading the correction, the Athens stock market finally broke its bullish streak, although for another day it struggled to maintain it, closing squarely in the zone of the 200-day moving average.

In particular, the general index closed with a fall of 0.31% at 867.51 points, while today it moved between 865.54 points (-0.49%) and 876.54 points (+0.72%). The turnover amounted to 57 million euros and the volume to 28.8 million pieces, while 1.2 million pieces were traded through pre-agreed transactions.

The high capitalization index closed with losses of 0.59%, at 2,096.95 points, while the Mid Cap ended trading at -0.28% at 1,383.13 points. The banking index closed down 1.75% at 556.08 points.

The upward streak was broken

It took the market three weeks of rallying to reach two-month highs, with the retracement of the 200-day moving average struggling for two days as it is unable to post the higher turnover levels needed to enable a consolidation above 867 – 868 units. After all, it may have added more than 90 points from a low of 778 points in early July, but not much water has flowed down the drain that could signal a major change in market direction.

At the same time, profits in such a complex environment are attractive enough to be secured, a tactic that was not lacking in the previous days, but without the “cost” showing in the general index. In fact, the corporate results that were announced provided important grounds for maintaining the upward streak, which if accompanied by an increase in turnover would constitute a remarkable recovery.

What is conveyed by the domestic analysts at Capital.gr, however, is that the test of the market and the levels will not be immediate, unless there is a catalyst that changes the market’s outlook. Seasonality, as traditionally happens in August meetings, postpones many strategy moves, at least the big ones, that could strengthen the market trend.

The important things are therefore expected towards the end of August, when the developments on the critical fronts plaguing the European economy will accelerate. Now technically, the market should at least hold the levels of 866 – 868 points at the close of the week tomorrow if it wants to maintain the positive short-term trend.

Let’s not forget that as shallow as our market is on the decline, it is as shallow on the rise once it starts trending, but if the level holds, the path to the next resistance at 880 points is open, with the market having significantly improve portfolio confidence.

On the dashboard

On the scoreboard now, Ethniki lost 3.75%, with EYDAP following with its -2.92%. Above 1% was the decline in Hellenic Petroleum, Biohalco, Alpha Bank, Eurobank, Sarantis and PPC, while Lambda, Mytileneos, OPAP, ADMIE, Jumbo, Titan and GEK Terna closed slightly down.

On the other hand, Ellactor, Piraeus, Motor Oil, Coca Cola and Quest posted gains of over 1%, while Terna Energy, Aegean, PPA and OTE closed slightly higher. ELHA closed unchanged.