Sell-offs may weigh on Egyptian Exchange Monday

Technical analysts made varying expectations for the Egyptian Exchange’s (EGX) performance on Monday, as some expected the emergence of selling pressures, while others forecast the equity market to maintain the positive performance.

Sell-offs started to emerge again near the resistance levels of 13,750 and 13,850 points to force the benchmark EGX 30 index to drop, head of technical analysis at Arab Finance Securities Osama Naguib told Mubasher.

Lower trading volumes also indicate that sell-offs are weak, Naguib said.

The EGX 30 index has main support at 13,400 and 13,150 points, he highlighted, pointing out that the index will continue seeing selling pressures as long as it moving beneath 14,800 points.

He recommended investors to benefit from any rise and perform quick trades on stocks, in line with being careful to support levels and stop-loss limits.

For his part, Ayman Fouda, head of capital market committee at the African Economic Council, said that the EGX 30 index may retest 13,970 points if it retests resistance at 13,775 and 13,800 points.

He added that the index has support at 13,500 and 13,330 points and it may break these levels and retest 13,174 points.

As for the small- and mid-cap EGX 70 index, Fouda said it has a short-term resistance at 712 and 720 points, and has support at 695 and 688 points.