Cairo – Mubasher: The Egyptian Exchange is expected to move sideways on Sunday amid a lack of momentums and positive data, said analysts.
The benchmark is still swinging between 7,300 points and 7,700 points, said Sameh Gharib, head of technical research, Roots Stock Brokerage House. This area represents a narrower channel in which the main gauge has been moving since it recoiled from the mark of 7,993 points, which had been the highest level since August 2015, to the level of 7,275.
If the main index keeps moving above the support level of 7,257 points, it will adopt a sideways correction that will prompt EGX30 to shoot above 8,000 points, then the kind of data and momentums will determine whether it will achieve record levels.
Over the last week, the main gauge kept moving sideways in a narrow channel ended the week near the mark of 7,500 points for the third straight week, said Ehab Said, head of technical research at Osool Securities Brokerage. Such repetitive closing signifies that the stock market lacks momentum in the trading race.
Ehab expected EGX30 to target the support area falling between the mark of 7,330 and 7,270 points, adding that the main index, if steadied over the former mark, will likely retest the previous resistance mark of 7,700 points.
Meanwhile, the small and mid-cap index EGX70 is more likely to target the scale of 377 points and then to re-test the level of 383 points, Ehab concluded.
On Thursday, the benchmark fell 0.16% to 7,531.2 points, pressured by local investors’ sales.
