Cairo – Mubasher: The Egyptian Exchange’s (EGX) sideways-to-declining performance is expected to continue amid traders’ anticipation of new incentives that will bolster purchasing momentum on stocks, allowing them to exceed resistance levels and reach new levels, analysts told Mubasher on Sunday.
The sideways-to-declining performance will continue with the first trading session of the week, alongside selective buying at support levels, who have recently posted positive financial results, chairman of the Capital Market Committee at the African Economic Community (AEC) Ayman Fouda said.
The benchmark EGX30 index is expected to target resistance at 13,550 to 13,609 points, Fouda said, noting that support will continue to range between 13,350 and 13,609 points.
As for the small-and-medium-sized stocks index, short-term resistance will be seen at the level of 725 points to 733 points, while support will be seen between 718 and 711 points, he continued.
“The index continued retreating to close below the first support 13,500 points on average volume, and this might push the index even lower towards 13,330 points and breaking below this level calls for stop-loss, while any rebounds should be used in off-loads,” commented Shahd Raafat, technical analyst at MubasherTrade.
The EGX closed Thursday’s trading session 0.87% or 118.38 points down at the level of 13,462.38 points, pressured by foreign and Arab selling.
