The document discusses recent trends in the EGX30 stock index in Egypt. It notes that the index has risen significantly, breaking above resistance levels and moving above its 50-day and 200-day moving averages. The document predicts a potential near-term "healthy correction" in the index as indicators like the RSI and MACD face resistance, but does not expect the index to decline back to its lowest levels from 2011. It recommends investors continue accumulating positions during any correction.

1. TECHNICAL TIPS (EGYPT)
JAZIRA SECURITIES BROKERAGE Tuesday, February 21, 2012
EGX30 RIC: .EGX30
Should History Repeats Itself, Then Don’t
Expect More Than A Healthy Correction Move
It’s all about recurring patterns. We’re looking for
similarities between 2009/ 2012 bottoms and it’s just
fascinated seeing how history repeats itself over and
over again.
Pure Price Analysis:
1- The index thrust violently taking out upper re-
sistance levels. 2– It’s well over the 50– and 200-day
EMAs, (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 isn't ,
by any means, just a correction, but rather a first leg of
a bull market. 4– At current pace, Just a healthy cor-
rection may take place
RSI & MACD: (Aren’t perfect?!)
1– see the magnificent thrust after the up-breakout
over both triangles in RSI. 2– see how the RSI vaulted
just to the Bull Resistance Line as it did in 2009 thrust
move. 3– Taking out a dotted brown rising line in
May, 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 a
healthy correction phase. 4– As we were expecting
before, a decisive up-breakout over the MACD falling
channel put the last nail in bear market coffin. 5– The
MACD currently faces an important resistance zone THEN WHAT? Yes, we expect a correction, but actually we don’t expect seeing the 2011 lowest low
and 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 and
may take place in the near future. MACD to go to their lower support. Meanwhile, it’s a great opportunity to continue Accumulating
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2. TECHNICAL TIPS (EGYPT)
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