Charts Gave an Early Warning of Greek Crisis: Analyst
Greek stocks gave inventors advance warning of the crisis to come for the country, but now they are saying it could be time to buy again, Daryl Guppy, CEO of Guppytraders.com, told CNBC Thursday.
"This is not a surprise, these markets have been aware of these problems for some extended time… If we look at the chart we can see that in fact there was a head and shoulders pattern that developed in September, October, November," Guppy said while taking a technical look at the FTSE/Athex 20 Index.
"That gave us an early warning of the collapse of the market before that final collapse that developed in November and that downtrend that developed," he said
The Athex 20 could now rebound and a move above 1,000 points would indicate that the downtrend is ended and the index can retest the 1,200-point resistance level, Guppy said.
If the index fails to hold the 900-point level it could retest the lows that were established in March in 2009, he added.
- Watch the video above to find out why gold is developing a "Killer Boomerang" pattern.