EGX 30 Prepares For ‘a big move’ At Breakout of 5000-5100 Area: Pharos

In its daily technical report, Pharos Research said that the market action during the last few sessions shows that we might be preparing ourselves for a big ride. Such a significant market move is expected to occur at the breakout of the 5,000-5,100 area.

“Our first level to watch though is 4,850 which is a resistance that has been gaining strength lately. Thus, we reiterate our view that a break above this minor resistance will be a chance for short-term players to enter the market. Position traders (those who are more inclined to the intermediate-term picture) should wait for the break of 5,000 to add to their positions,” according to the report issuer.

Pharos added that the MACD indicator is currently moving laterally and touching its signal line. Such an action usually signals that a sudden period of high volatility is expected to occur. Based on the current market performance, we believe that this high volatile move will be to the upside. The RSI, that lies at the lower panel of the chart, however, did not enter overbought yet. A rise to overbought accompanied by a price break above resistance will be a good signal to enter the market more aggressively.

The report issuer believed that the market is preparing itself for a big move which will probably change the intermediate-trend to up.