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Leading shares expected to test resistance level at 15,000 points this week - Daily News Egypt

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Leading shares expected to test resistance level at 15,000 points this week

Ahmed Fahim, head of technical analysis at Al-Shorouk Brokerage Company, said that the main index will continue its bullish move to target the new resistance level at 14650 points this week, which, if penetrated, the index will target 15000 points


Traders in the Egyptian Exchange (EGX) expected that the upward trend will dominate the performance of stocks this week and that the leading stocks to be able to test the resistance level at 15000 points.

Ahmed Fahim, head of technical analysis at Al-Shorouk Brokerage Company, said that the main index will continue its bullish move to target the new resistance level at 14650 points this week, which, if penetrated, the index will target 15000 points. He said that the EGX70 penetration at 537 points will help it break the negative pressures to continue rising to the next resistance level at 560 points passing 550 points.

Mohamed Osman, head of technical analysis department at Pharos Holding, said that the majority of the actively traded stocks faced selling pressure by the end of last session, which is seen as a normal reluctance off the predefined resistance level of 14,520. The latter level represents the upper boundary of the sideways movement which has been in place for the last four weeks. Thus, facing reluctance near such a resistance could be seen as normal warrior rest.

In this regard, the Index might witness a normal profit-taking before resuming its rebounding attempts. As a confirmed break above the resistance level of 14,520 (which is still the preferred scenario), would trigger recovery signal on the short-term and pave the way for further advances to the levels of 14,800 and 15,100

Osman pointed out that he will keep his bullish view point as long as the Index keeps trading above its support level of 14,050 points. The first support area to watch for lies between the levels of 14,300 – 14,250 points.

The blue chip EGX 30 index closed at 14,558.02 points, recording an increase of 2.47%. EGX70 index posted 1.58% gain concluding the period at 539.27 points, while the S&P index rose by 2.79% and concluded the period at 2,125.3 points.

The EGX 30 index cap rose by 2.58% and concluded at 17,530.72 points, while EGX 100 index rose by 2.16% and concluded the period at 1,436.86 points.

Total market capitalisation reached EGP 727.7bn at the end of the period, representing an increase of 1.97% over the last week.

The total value traded recorded EGP 17.1bn, while the total volume traded reached 1,196 million securities executed over 113,000 transactions last week.

For the week before last, the total value traded recorded EGP 7.7bn, while the total volume traded reached 952m securities executed over 87,000 transactions.

Stocks trading accounted for 23.76% of the total value traded of the main market, while the remaining 76.24% were captured by bonds over the last week.

Egyptians represented 74.2% of the value traded in listed stocks after excluding deals during the period. Foreigners accounted for 18.5%, while Arabs captured 7.3%. Foreigners were net buyers, with a net of EGP 31.8m, and Arabs were net sellers, with a net of EGP 0.9m, after excluding deals in listed stocks.

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https://dailyfeed.dailynewsegypt.com/2019/11/03/leading-shares-expected-to-test-resistance-level-at-15000-points-this-week/
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