CAIRO: The Egyptian Exchange (EGX) is greatly expected to note a positive performance this week where the indexes and stocks will open up in an attempt to penetrate their resistance levels, technical analyst at the African Economic Group Mona Moustafa said Saturday.
Meanwhile, the market still lacks the required momentum as no purchasing powers appeared to enable the indexes to penetrate their target and confirm the penetration, Moustafa told The Cairo Post.
“EGX, however, will keep its mixed sideways trading between the support and resistance zones until gaining momentum,” she said.
The benchmark index EGX30 is still moving between the resistance level of 9,500-9,720 points and the support level of 9,290 – 9,150 points, Moustafa said.
The indexes ended last week’s trading up amid sideways performance with an upward tendency, after failing to penetrate the resistance areas where the strong sellers appeared, added the analyst.
Moustafa attributed the sideways movement to the profit taking activities that tested and maintained the near-support levels.
Last week, EGX30 gained 0.66 percent to close at 9,435 points, down from 9,373 points a week earlier.
The small and mid-cap index EGX70 rose 0.98 percent to end the week at 658.7 points, compared with 652 points. The broader index EGX100 also gained 0.29 percent to close at 1,168 points, compared to 1,165 points a week earlier. Market capitalization gained more than 4.4 billion EGP ($615.3 m