Cairo – Mubasher: The Egyptian Exchange is likely to test higher levels on Wednesday, stimulated by new purchasing powers, said analysts.
Yesterday, the benchmark moved 2.63% higher to 7,864.03 points, maintaining the bull-run for the fifth session and recording the most positive performance in 8 months.
Ehab Said, capital market expert, said the benchmark targets the area ranging from 8,000 points to 8,100 points and will likely keep moving forward to the mark of 7,950 points.
Likewise, Mona Hassan, Chief technical analyst at Mubasher, said high trading volume will push EGX30 above 7,680 on Wednesday.
On the other hand, Pharos expected EGX30 to break the current resistance level with a “potential divergence”. It said, EGX target “lies at the 8,000-8,200 area. Worth noting that this rise has an embedded negative divergence with momentum indicators. Such a divergence tells us that this rise will not probably be sustainable on a longer time frame”.
The research firm advised investors to approach the mark by using “trailing stops to protect gains”, according to the research firm’s technical report.
Translated by Ahmed El-Sayed Ali
