Cairo-Mubasher: The Egyptian Exchange (EGX) is expected to maintain its bullish performance this week, boosted by positive news about the parliament election; the last step to complete the roadmap, technical analysts said.
Ehab Al-Said, head of technical analysis at Osool ESB Securities, said EGX30 will target its next resistance of 6,900 points, adding that if the benchmark crosses this level, it will continue its correction rebound to 7,250 at least.
If EGX70 breaks its resistance of 365 pts, it will keep moving higher to 375 and then 385 at least, Al-Said added.
EGX30 closed out last week with a rise of 5.47% or 351.46 pts to reach 6,779.28.
Ayman Fouda, head of capital market committee at the African Economic Council, forecasted the positive outlook for the local exchange to continue this week on the bullish news which boosts confidence in the Egyptian economy.
The indices will likely reach their resistance levels this week amid profit-taking, Fouda said.
He advised medium and long-term investors to hold their equities and trade with a portion of their shares during strong fluctuations.
Short-term investors and speculators should focus on small-cap stocks and capitalise on the T+1 settlement system.
Translated by Abdul Maguid Aboshahla
