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Technical tips (egypt) egx30 - feb 21, 2012


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Should History Repeats Itself, Then Don’t
Expect More Than A Healthy Correction Move

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Technical tips (egypt) egx30 - feb 21, 2012

  1. 1. TECHNICAL TIPS (EGYPT) JAZIRA SECURITIES BROKERAGE Tuesday, February 21, 2012EGX30 RIC: .EGX30Should History Repeats Itself, Then Don’tExpect More Than A Healthy Correction MoveIt’s all about recurring patterns. We’re looking forsimilarities between 2009/ 2012 bottoms and it’s justfascinated seeing how history repeats itself over andover again.Pure Price Analysis:1- The index thrust violently taking out upper re-sistance levels. 2– It’s well over the 50– and 200-dayEMAs, (waiting for a golden-crossover signal). 3– Re-traced more than 61.8% of the falling red channel, giv-ing a high probable signal that the current up-leg isnt ,by any means, just a correction, but rather a first leg ofa bull market. 4– At current pace, Just a healthy cor-rection may take placeRSI & MACD: (Aren’t perfect?!)1– see the magnificent thrust after the up-breakoutover both triangles in RSI. 2– see how the RSI vaultedjust to the Bull Resistance Line as it did in 2009 thrustmove. 3– Taking out a dotted brown rising line inMay, 2009 was an early signal of June/July 2009 cor-rection move, so as the RSI descended below its short-term dotted rising line, we expect a beginning of ahealthy correction phase. 4– As we were expectingbefore, a decisive up-breakout over the MACD fallingchannel put the last nail in bear market coffin. 5– TheMACD currently faces an important resistance zone THEN WHAT? Yes, we expect a correction, but actually we don’t expect seeing the 2011 lowest lowand a decline to, or just slightly below, the zero line again. Expect the index to trade lower or laterally between 4,4470 and 4,770. Expect the RSI andmay take place in the near future. MACD to go to their lower support. Meanwhile, it’s a great opportunity to continue Accumulating 1
  2. 2. TECHNICAL TIPS (EGYPT) JAZIRA SECURITIES BROKERAGE Tuesday, February 21, 2012 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) 3760 9915 +20100 1410 690 helsawalhy@jaziracapital.comAhmed Helmy Head of Sales & Trading (+202) 3760 9915 +20100 1004 482 ahelmy@jaziracapital.comRamy Rashad, CMT Senior Technical Analyst (+202) 3760 9973 +20100 8385 501 rrashad@jaziracapital.comMomen El-Shayal Technical Analyst (+202) 3760 9983 +20100 7678 545 frefaat@jaziracapital.comGeorge Mansour Customer Service (+202) 3760 9941 +20122 9214 069 gmansour@jaziracapital.comDoaa Osman Customer Service (+202) 3760 9941 +20122 7552 436 dosman@jaziracapital.comBasant Soror Online Trading Technical Support (+202) 3760 9941 +20122 1615 409 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