Cairo – Mubasher: The Egyptian Exchange's (EGX) sideways performance is likely to continue in the mid-week trading session amid speculation about devaluing the Egyptian pound at Tuesday's FX regular auction, said analysts.
The benchmark index is moving sideways between the resistance mark of 7,650 points and the support level of 7,350 points, said Ahmed Al Bagory, head of technical analysis department at Okaz Stockbrokers and Investment.
This sideways trend is mainly driven by the lack of positive data and the deterioration of the Egyptian pound in the parallel market, the analyst added.
He expected the second half of the session to see selling that will push the main index lower at close.
Yesterday, the market's benchmark rose to 7,517 on average volume, said Mubasher Trade Research in its daily technical commentary.
"As bulls started to take over after the main index found itself a new minor support at 7,436, volumes in turn improved and new trading opportunities appeared", the research firm said.
However, the market will not fully recover until breaking above the resistance level of 7,645 points. Investors are advised to avoid "fast trading", the research agency concluded.
