Long positions are still intact provided the following support levels hold:
– 960.65 (low 9/01)
– 957.75 (weekly low so far)
– 910.99 (high 22/10)
– 907.90 (gap from 31/12)
Resistance could be found at:
– 992.34 (2013 high 8/01)
Genikos Deiktis has more than doubled during the impulsive 7-month upmove that started at the multi year lows of 471.35 in June 2012. This is a bull within a huge bear market.
In general, we have witnessed a low volume rally, built on the lack of negative surprises about the country’s financing, restructuring expectations and positive sentiment across other global risk markets.
The banking sector has been the laggard during the Greek Index rally, given open issues about recapitalisations and a domestic economy in depression.
There is no indication in favor of short positions right now, however the market is severely overbought and a profit taking correction of significant magnitude has been long overdue and could be swift.