STOCK CALL                 JAZIRA SECURITIES BROKERAGE                                                        Tuesday, Dec...
STOCK CALL                 JAZIRA SECURITIES BROKERAGE                                                                    ...
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Stock call (without activity we are playing roulette!!!) dec 13, 2011


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Stock call (without activity we are playing roulette!!!) dec 13, 2011

  1. 1. STOCK CALL JAZIRA SECURITIES BROKERAGE Tuesday, December 13, 2011EFG-HERMES RIC: HRHO.CAWITHOUT ACTIVITY WE ARE PLAYING ROULETTE!!!1– The trend is down without doubt and as long as the security keeps oscillatingin this falling channel, you should expect a decline to, or near, a declining sup-port red line (possible similar or new swing low). A decisive up-breakout overEGP11.60 signals a beginning of an accumulation mode, but we think that wecan extract early signals from momentum indicators.2– Sellers are getting weaker and weaker. The security is registering lower levelswithout any noticeable support from momentum indicators.A) in MACD we’re seeing a series of positive divergences in different de- grees. That’s bullish. However, we need a thrust over the zero line.B) The RSI still in a Bear Range (see red horizontal lines). A breakout over the 50-line has led to a Negative Reversal signal (see brown line). we see also a multiple positive divergence signal, similar to that in 2009 bottom. The RSI used to penetrate trend lines and rise violently over them keeping the divergence pattern intact. It hovers around a support zone and a thrust should come with no surprise.C) Volume: without activity, we’re playing roulette! Only luck will be the major factor. The real volume figure is currently below the 200-day EMA of volume. Keeping an eye on the 2009 bottom, the circles show how the volume spiked just at the bottom and then thrust to signal a beginning of a bull market. We need, unfortunately in current circumstances, a similar pattern. A breakout over the falling channel without activity will bear nothing to me.3– We need prices to find support somewhere between 8.50/ 9.45. A breakoutbelow the rising green line in the RSI indicates that the RSI is going to test thelower Bear red support line. That may force, or give an early signal, that thesecurity is going right to below 9.45. A high activity there shouldnt fear you, buthowever, it should pull your trigger. If the RSI held firm at current level, the bullsupport line, it may thrust and this thrust move will force the security to penetratethe 11.60 level signaling a conservative BUYING opportunity BOTTOM LINE: (Last Price: EGP10.29) Hold, Buy Dip to the lower declining support red line and Buy strongly over 11.60 1
  2. 2. STOCK CALL JAZIRA SECURITIES BROKERAGE Tuesday, December 13, 2011 Jazira Securities Brokerage Jazira Securities Online Trading 15 Shooting Club Street, Mohandessin You can trade online through Jazira Securities online Tel: (+202) 3760 9983 - 37609941 trading portal ... Fax: (+202) 3760 9883 Please contact our customer Service representatives for further information..JSB Contacts Title Land Line Mobile EmailHussein El Sawalhy, CFA Managing Director +202 2578 0931/2 +20100 1410 690 helsawalhy@jaziracapital.comAhmed Helmy Head of Sales & Trading +202 2576 0188 +20100 1004 482 ahelmy@jaziracapital.comMohamed Fahmy Head of Research +202 2578 0931/2 +20122 2157 312 mfahmy@jaziracapital.comRamy Rashad, CMT Senior Technical Analyst +202 2578 09 31/2 +20100 8385 501 rrashad@jaziracapital.comBasant Soror Online Trading Technical Support +202 2578 09 31/2 +20122 1615 409 bsoror@jaziracapital.comGeorge Mansour Customer Service +202 2578 09 30 +20122 9214 069 gmansour@jaziracapital.comDoaa Osman Customer Service +202 2578 09 30 +20122 7552 436 Disclaimer  Jazira Securities Brokerage (JSB) is a licensed Egyptian Stock Market Broker, regulated by the Egyptian Financial Service Authority.  Opinions, estimates and projections contained in the research reports or documents are of the author as of the date published and are subject to change without notice  JSB research reports or documents are not, and are not to be construed as, an offer to sell or solicitation of an offer to buy any securities.  Unless otherwise noted, all JSB research reports and documents provide information of a general nature and do not address the circumstances of any particular investor.  Neither JSB nor its mother company (Jazira Capital), or any of its affiliates accept liability whatsoever for any investment loss arising from any use of the research reports or their contents.  The information and opinions contained in JSB research reports or documents have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness.  JSB, Jazira Capital or any of its affiliates and/or their respective officers, directors or employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent.  JSB research reports and all the information opinions and conclusions contained in them are protected by copyright.  The research reports or documents may not be reproduced or distributed in whole or in part without express consent of JSB Research.  JSB research reports or documents, recommendations and information are subject to change without further notice . 2