The general index of the Greek stock market is showing short-term fatigue as it attempts to rise above 1,350 units. In more detail, in the last eleven meetings, since the time of writing on Thursday morning, the index has read 1,350 units, but only in one, last Wednesday, it managed to exceed the specified limit. Variation between 1,354 and 1,363 units. All, that is, the daily candle was over 1,350 units.
However, graphically, at least three such breakout patterns must be recorded to confirm an upward segment and for the index to peak at the historical point of 1,400 units. This has not been met yet, and pressure will increase for a rough descent towards the 1,330 units level unless suitable upstream fuel appears. This is where special attention is needed as it crosses the lower line of the ascending trend channel “C” formed last mid-November at 1,196 units. A downward break of the channel is likely to give more encouragement to sellers, providing a support zone for the next point between 1,300 and 1,284 points or -4.60% from the current trading price of 1,347 points. We are receiving mixed signals from several technical momentum oscillators as they look for a warm-up from an overbought situation with the largest corrective action being -3.55% in the 7th to 13th November period.
Also, let's remember that the public index is now “bank-driven”, with a national bank on top of the regulators, controlling 10.8% of its operations, while adding the other three bank women, we get 26. According to the 11% statistic, when something similar happened in the past, the indicator liked its timing. This, of course, does not mean that other key institutions participating in the development of the index will pay attention to the new data. For instance, three giants like Mytilinos, Motor Oil and Titan Cement International have hit new all-time highs in recent sessions.
So, let me start with Mytileneos Group, which first announced its annual financial results for 2023. According to them, the turnover was 5.492 billion euros, a decrease of -13% compared to 6.306 billion euros in 2022. Mainly due to a significant reduction in energy prices, earnings before taxes, interest and depreciation (EBITDA) recorded a significant increase of +23% to 1.014 billion euros in 2022, against 823 million euros in 2022. Time, net profit reached 623 million euros from 466 million euros in 2022, an increase of +34%. The proposed dividend was 1.5 euros per share, while the adjusted net debt/EBITDA was very favorable at 1.5x, which is considered in line with large investment grade companies. Now, signs stemming from the resilience of a strong business model show that this industrial and energy multinational group has exceeded all expectations, laying the groundwork to consolidate its profits above 1 billion euros and over the next years. The stock's quarterly price chart is reminiscent of one American technology company breaking one all-time high on Wall Street. A long-term bullish pivot here is pushing “Q” shares towards €42 to €45.50.
We also got a new all-time high of €26.02 from shares of Motor Oil Group (MOH), taking the scepter out of the hands of the spring 2006 peak after 6,483 days. Graphically, the stock then decided to escape upwards from a long-term sideways movement in the key price range of 22.80 to 24.60 euros, opening the door to the next level located at 30 euros. To say that this situation is valid, the stock must not lose and must be below the support level of 24 euros.
The long-term chart of Titan Cement International (TITC) was also explosive, where, after robbing the resistance area at 18 euros, it gained momentum, breaking 20 and 21.60 euros along the way. Now it has started and is calculated at the level of 24 euros. An upward break of this chart “fort” would bring the stock on its way to capturing the next resistance zone located at €26. Here, the shares should not come close to 22 to 21.60 euros, so as not to create a split in the situation in question.
* Apostolos Manthos is responsible for technical analysis and investment strategy
* Reprinted from Kefalio Newspaper
