Egypt’s EGX30 stock index may rally as much as 4.3 percent in the coming weeks after it rose above the average close of the past 200 days for the first time since May, according to Beltone Financial.
The measure of 30 stocks gained 1.8 percent to 6,617.76 in Cairo yesterday, surpassing its 200-day moving average. The gauge had closed below that average since May 19, falling as much as 9.8 percent to an 11-month low on July 5. It has climbed 13 percent since and may rally to 6,900 in the next few weeks, said Mohab Agena, head of technical analysis at Beltone, a Cairo-based investment bank.
“The 200-day moving average acts as a psychological resistance for investors, but I think we can stay above it in the coming weeks,” Agena said in a telephone interview. “We’re forming higher lows on a daily basis, which indicates there’s momentum on the buy side.”
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