Is The Market Ready to Bounce?- EGX100 is down around 27% from its high.
- Today it hit a very important level, the 200 day MA which was tested before on March 2023, and also if we measure the fib level, we find that it retraced to a 50% level.
- This also occurs while EGX30 hitting its 200 day MA as well.
- Now we can never know for sure if this bottom or not, but we can be prepared for both scenarios.
- Resistance overhead @ 8500 if this can be breached, the way is clear towards the 9000 level,
and this a very critical level, as anywhere between 8500/9000 the sellers may show up again and try to push the market down.
- If buyers manage to break the 9000 level, the probability that this is a bottom is high, with only the level between 9300-9700 will be left to confirm the continuation of the bull trend.
- Pls note that currently the market is considered on a downtrend with 20/50/100 MA all pointing down.
- Not a good advice to reenter those tickers that became so cheap, look for the ones that were holding their levels as those are the ones with higher strength comparing to the market.
- It's always better and safer to wait until the market confirms the bull trend before buying.
