Today’s Greek Stock Picks: ELLAKTOR and ELBA

greek-general-index-october-2010My today’s Greek stock picks include the ELLAKTOR stock and the ELBA stock. Trading in the Greek stock market this week is a bit risky, according to the [intlink id=”896″ type=”post”]General Index’ analysis[/intlink] I wrote about a week ago. However ELBA seems to be consolidating and we can profit by trading the sideways movement. ELLAKTOR stock on the other hand offers more long term potential and the stock price is currently trading at an important support level, which will be used to set a stop loss. If the Athens stock exchange allowed shorting stocks, my stock picks would all be shorting orders, but traders are limited to long positions.

Starting off with the ELLAKTOR stock daily graph, the support level which used to be a resistance one is quite apparent. The stock price is trending downwards though and that might prevent several traders from going against the trend but if we look at the big picture, a long term downtrend ended in June, the stock has been consolidating afterwards and stock’s weakness to reach new lows indicate a possible beginning of an uptrend. Additionally, the weekly stock graph shows a Fail Bottom right at the 2008’s support level. We might catch a good trend of ELLAKTOR stock, but a stop loss is always needed to cut our losses short, in case the stock price resumes the previous downtrend.

Another factor that suggests entering long is the S1 Pivot Point hit at the 60 minutes’ stock graph. ELLAKTOR stock dropped from 3.20 to 2.98 during last week, but retracing to the support level should be expected. That level mentioned above is much more obvious in this stock graph, although it would need confirmation before trading ELLAKTOR stock. Adding the stock in the watch list should be the least we do.

ELBA stock is trading at the lower Bollinger Band, while the Bandwidth has dropped to the lowest point, indicating a quite possible ending of the currently established downtrend. The support level at 1.10 provides excellent stop loss guidance, but the less risky traders could set the stop loss at 1.00, which is the lowest low since March 2009. Since the S1 Pivot Point is at 1.03, we could wait for the ELBA stock price to reach that level before trading the Greek stock, going for a much safer and more promising trade.

Upon scanning the other Greek stocks, I could find a numerous interesting stock picks available for shorting, but entering long is the only way to trade the Greek shares. The Greek stock market is obviously moving sideways the last months after a long term downtrend that cost a lot, and although there’s always the possibility to reach for new lows, there’s a good chance it enters a long term uptrend. Of course news, politics and Greek economy will lead the Athens Stock Exchange to exit the consolidation. It remains to see if it would be for the good or bad.

Comment (1)

  1. ccgains Oct 18, 2010

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