Cairo – Mubasher: The Egyptian Exchange (EGX) is expected to maintain the sideways-to declining trend on Wednesday amid investors’ anticipation for the decision of the Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) on interest rates, analysts told Mubasher.
The benchmark EGX30 index is likely to move in a downward direction in the short term after falling below support level at 16,230 points on Tuesday, head of technical analysis department at Arabeya Online Michael Armia said.
He advised investors not to buy stocks in the meantime until the EGX resume the bull run, pointing out that the EGX30 is projected to move upwardly in the long-term and downwardly in the medium-term.
The EGX30 has main resistance at 16,400, 16,570, and 16,800 points, while it has support at 16,150, 16,000, and 15,780 points, Armia indicated.
For his part, head of the market committee at the African Economic Council Ayman Fouda said that the EGX is likely to carry on the sideways-to declining trend amid the continued correction movement, in line with investors’ anticipation for the decision of the CBE’s MPC on interest rates
The EGX30 has a short-term resistance at 16,400 and 16,580 points, while it has support at 16,000 and 15,780 points, Fouda highlighted.
Moreover, the small- and mid-cap index EGX70 has a short-term resistance at 803 and 816 points, while it has support at 785 and 770 points, he added.
He recommended investors to monitor stocks carefully and hold onto their stocks amid the current correction.
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