Monthly gains for Greek equities for November up to date are the best for the many last years. After a fourth positive week in a raw, monthly gains have jumped to 29% for the Athens General Index and 32% for the FTXE/ASE large cap index. Buyers defeat sellers right on time intraday while there are some days with narrow trading range in order to consolidate the new levels of prices. The rule says that a stock exchange is attractive when there is momentum and turnover and investors are activated accordingly instead of remaining on the sidelines. A market that correlates to structural changes and reflects financial developments is preferred to the zero-yield bond market or the marginally positive rates of savings.
Apparently we do not ignore the detrimental historical moments for the planet due to the current pandemic and the devastating losses of human lives. Furthermore, we do not ignore the nature of the phenomenon and the many questions that are present in daily life. However, there is a feeling that time is ticking in favor of society and economy in this fight. A road map and a timeline seem to be followed in the effort to bring a broadly accepted level of normality in daily life.
From a technical point of view and after four weeks of steady gains, the weekly chart of the General Index and the charts of the majority of large cap stocks are expected to enter a stage of consolidation as many indicators have reached overbought levels. We are still in a bull leg especially after the climbing of the General Index above its weighted 200-day moving average (683 points currently) in a textbook style. The broader range of 680-690 points is the short term support in case of a correction. The simple 200-day moving average passes from lower prices, at 647 points, and is considered as a longer term support.
It is possible that a 2-3 week consolidation interval might start soon for the broader market in order to find additional oomph. In addition, it is well known that passive index funds are moving slowly and prefer a calm market in order to add to positions while January is their preferred time of the year to build new positions.
Many listed companies are expected to report Q3 results during the next week when the reporting season concludes. Among others, on 30/11 National Bank of Greece, Hellenic Exchanges, on 1/12 Public Power Corporation, on 2/12 Admie Holding (Independent Power Transmission Operator). Advanced Q3 GDP is expected on 4/12 (Hellenic Statistics Authority). Finally, the 10-year treasury benchmark yield moved sideways during the week, at 0.65%-0,70%.