Monday, 21 May 2012

Greek stocks could bounce but no clear sign of reversal yet

 One of my followers asked me to make a comment on the greek market and National Bank of Greece, so today we provide a small analysis on troublesome Greece.
National Bank of Greece hit the lower line of the downward sloping trend channel. A short lived bounce can be expected up to 1,40. Pressure is high in greek stocks and June 17th elections will be a critical point in both the country's and the stock's future. A close above 1,55-65 area could become  the start of a bullish trend change. Resistance levels at 1,80 and 2,10 are next.
The strategy followed and suggested up to now in greek stocks was to remain in cash and ready to pull the trigger until the right bullish signals appear on the chart. FTASE20 as shown in the chart above has reached the lower red support line and may be in position to give an upward bounce, but with no signal for a trend change yet. Intraday trading is prefferred as volatility is hign in greek stocks this period.

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