Cairo – Mubasher: The Egyptian Exchange (EGX) is expected to carry on the sideways trend on Tuesday, analysts told Mubasher.
The benchmark EGX30 index has resistance at 16,100 and 16,336 points, head of the market committee at the African Economic Council Ayman Fouda said.
The index may retest 15,550 and 15,400 points if it breaks support at 15,780 points, Fouda added.
Meanwhile, the small- and mid-cap EGX 70 index has a short-term resistance at 803 and 815 points and it may retest 820 points if it settled above these levels, he highlighted, pointing out that the index has support at 785 and 770 points.
Fouda recommended investors to monitor stocks carefully to get benefit from the positive rebound recently seen by stocks in order to alleviate opened positions at investment portfolios, in line with avoiding creation of new purchasing positions until the EGX becomes stable.
He also advised quick traders not to buy on margins, especially when the stock market is moving in a downward direction.
For his part, head of technical analysis department at Arabeya Online Michael Armia said that the EGX30’s performance was negative on Monday’s trading session and is likely to maintain moving downwardly in the medium- and short-term.
Investors should not conduct purchases until the EGX recovers from the current bearish trend, Armia indicated, stressing that they have to respect the stop-loss levels.
The EGX30 is still moving upwardly in the long-term, seeing a sideways trend in the medium-term, and falling in the short-term, he noted.
He noted that the index has resistance at 16,335, 16,400, 16,800 points, and support at 15,900, 15,780, 15,500, and 15,180 points.
