By: Heba El-Kordy
Cairo – Mubasher: The EGX70 index has succeeded in attracting liquidity and breaking above medium-term resistance.
Simultaneously, the benchmark EGX30 index is seeing correction phases in an attempt to break through short-term resistance.
The EGX70 index is likely to carry on its bullish performance, keeping liquidity from the EGX30 index, analysts told Mubasher.
Analysts forecasted the EGX70 index to rise remarkably during the last quarter of 2017, targeting 900 and 945 points.
Fluctuated indices
Hesham Hassan, head of technical analysis at Acumen, said that the Egyptian Exchange (EGX) is witnessing a tension between the EGX30 index and the EGX70 index in terms of attracting liquidity during the current period.
This fluctuation is expected to continue in case the EGX30 index was not able to surpass resistance at 14,000 points, Hassan added.
Hassan mentioned that he EGX70 is winning over high liquidity from the EGX30 index.
Most of the EGX70’s stocks reached its highest levels during the last three trading sessions, he highlighted.
Investors should trade on the EGX30 index’s stocks, which completed correction movement over the past period, in case the EGX70 index saw profit-takings, he noted.
The analyst indicated that the EGX30 index will be able to break through resistance easily if Commercial international Bank – Egypt (CIB) overcame correction phase.
Powerful upward trend
The EGX70 is anticipated to maintain its upward trend, getting more liquidity, technical analysis at MubasherTrade Ahmed Ayyad said.
The index will test 900 points over the coming period if it exceeded 815 points, Ayyad added.
The analyst noted that the index aims to continue its powerful rising during the last quarter of the current year.
Moderate slowdown
Capital markets expert Toni Kamal said that the EGX70 index was able to test resistance at 800 and 810 points.
The EGX70 will see a slowdown period for a while to retest new ascending wave, Kamal pointed out.
Kamal noted that this period will be deemed as a good purchasing opportunity for investors, stressing that the EGX70 index overpassed the EGX30 index in attracting liquidity.
He forecasted the EGX70 index to target 945 points by the end of 2017.
The tourism sector had the biggest share in attracting liquidity to the EGX30 index, Kamal highlighted, expecting the sector to keep rising during the last quarter of 2017.
The expert explained that the EGX30 index aims short-term resistance at 14,100 and 14,500 points and medium-term levels at 15,500 and 16,000 points.
Translated by: Mai Ezz El-Din
