CAIRO: The Egyptian Exchange (EGX) benchmark index EGX30 failed early this week in extending its uptrend and penetrating its previous support level, which turned into a resistance level at 9,370 points and plunged towards 9,050 points.
Meanwhile, the main index managed to sustain above 9,050 points and rebounded during the second half of the week to retest its resistance ranging between 9,300 points-9,370 points.
“The benchmark index shut Thursday near its target registering 9,325 points, 0.99 percent up from 9,234 points Wednesday, and unfazed by Islamist calls for staging anti-regime protests Friday, Nov. 28,” Osool Securities Brokerage technical analysis head Ehab Saeed told The Cairo Post.
Saeed attributed the rise ahead of Friday protests to the positive performance of blue chips, namely the market bellwether CIB stock, which sustained above 48 EGP ($6.70) and resumed its rally toward its new resistance at 49 EGP-50 EGP.
He added that EFG-Hermes was the best performer among blue chips after it breached above its former resistance and approached 19.20 EGP at the close of Thursday’s session.
“EFG-Hermes is likely to retest its previous peak near 20 EGP, as it manages to penetrate its resistance at 18.20 EGP,” the analyst predicted.
Saeed further noted the EGX70 showed a mixed performance with sharp slides early this week as it failed to cross the key resistance level of 653 points and dropped near its short-term support level at 623 points, which stopped the plunge and pushed the index toward 642 points at the close of Thursday.
“Most small and mid-caps restored their momentum and positive performance following a profit taking wave on Sunday and Monday,” the analyst said.
Total trade value and volume have seen slight increases this week, ranging between 600 million EGP to 730 million EGP with a 665 million EGP daily average. This is compared to 560 million EGP the week before, Saeed said.
“Trading volume is still below former rates. It seems that sideways trading is still dominating the market performance in light of its medium-term correction wave,” he added.
According to the analyst, the EGX30 will focus on its previous resistance of 9,370 points. “Breaching above this level may push the index higher to retest 9,600 points,” Saeed said.
Saeed predicted the EGX70 will focus on a main resistance level between 653 points to 565 points that will temporarily hinder the uptrend.