Charts book egx30 index rebalance - august 01, 2012

JAZIRA SECURITIES BROKERAGE CHARTS BOOK

CHARTS BOOK
EGX30 Index Rebalance
6 IN & 6 OUT

By: Ramy Rashad, CMT

Wednesday, August 01, 2012

INDEX :

Name of Securities (IN) Code Page Name of Securities (OUT) Code Page

Oriental Weavers Carpet Co. ORWE.CA 4 El Saeed Contracting UEGC.CA 10

Egyptian Financial & Industrial EFIC.CA 5 Universal Co. For Packaging Materials UNIP.CA 11

Modern Waterproofing Co. WATP.CA 6 The General Co. For Ceramic & Porcelain PRCL.CA 12

El Kahera For Housing & Dev. ELKA.CA 7 Electro Cable Egypt Co. ELEC.CA 13

Sixth Of October Dev. & Inv. OCDI.CA 8 GMC Group For Industrial Commercial GMCI.CA 14

Raya Holding Co. RAYA.CA 9

CHARTS BOOK 2


EGX30 RIC: .EGX30

SIGNIFICANT LEVELS: BOTTOM LINE: (Last Price: 4,862Pt. ) TRADING TECH-
TREND : short and medium term trends are pointing up NIQUE:
First Second (Bullish breakout, with above average activity, over both a falling chan- Short-Term traders
Support 4,800 4,700 / 4,750 nel and a symmetrical triangle consolidation pattern, 50-day EMA (Days) & Medium-term
is doing a great job as a moving support line, the index is over the Traders (Weeks)
are advised to Hold/Buy a
Resistance 4,900 5,000 Ichimoku Cloud (not shown) and Double Top P&F signal is about breakout over 4,900
to materialize. MOMENTUM : Very favorable readings
Stop loss 4,685 4,560 (RSI is breaking out from its own triangle, MACD is over zero and
OBV is about to signal a major trend alteration
Target 5,150 / 5,450 5,800

CHARTS BOOK 3


ORIENTAL WEAVERS CARPET CO. RIC: ORWE.CA

SIGNIFICANT LEVELS: BOTTOM LINE: (Last Price: EGP19.43 ) TRADING TECHNIQUE:
TREND: Medium-term trend is Up again ( a decisive Short-Term traders (Days)
First Second breakout over a H&S classic bottom pattern with such a thrust in & Medium-term Traders
trading volume signals a sure-fire Buy signal - P&F Double Top (Weeks) are advised to BUY /
Support 18.90 18.5 Buy signal has been materialized (not shown)) BUY on a dip to the breakout
level.
Resistance 22.0 - A sure-fire 10% up-side poten-
MOMENTUM: Similar breakout in RSI and OBV
tial
Stop loss 18.40 - (Momentum indicators agree on the new up-thrust move)
You will run the “Liquidity
Risk”
Target 22.0 -

CHARTS BOOK 4


EGYPTIAN FINANCIAL & INDUSTRIAL RIC: EFIC.CA

TREND: Confluence of resistances at current levels; Short-Term traders (Days)
First Second (The security faces currently a multiple degree of moving resistance are advised to Buy. Con-
lines and the 200-day EMA, price is over the Ichimoku Cloud (not servative Short-Term trad-
Support 10.20 10.0 shown) which is bullish and the question you must ask now is; ers & Medium-term Trad-
Make or Break? MOMENTUM: OBV says it will break ers (Weeks) are advised to
Resistance 10.5 10.85
the 10.85 and MACD says may be (The Volume indicator, Buy a decisive up-breakout
Stop loss 10.0 - OBV, has cleared its prior swing high and as this indicator always over 10.85
precedes prices, we can say that the security may penetrate the 11.0
Target 12.0 13.0 level soon, MACD has bounced off the zero line which is bullish.

CHARTS BOOK 5


MODERN WATERPROOFING CO. RIC: WATP.CA

TREND: The trend still Bearish but Repeated pattern Short-Term traders (Days)
First Second is taking place; Watch out for a reversal in a medium- are advised to Buy only a de-
term trend (The security is below Ichimoku Cloud, which is cisive breakout over 2.08.
Support 2.0 1.95
bearish, but a possible Double Bottom pattern is taking place, vol- Medium-term Traders
ume is increasing on the second up-leg and taking out a declining (Weeks) are advised to Buy
Resistance 2.08 2.18 / 2.27
red trend line, 50-day EMA and a horizontal green trend line (All only a decisive breakout over
Stop loss 1.90 1.82 around 2.10 / 2.25) is all what we need for a nearly 20% upside po- 2.27
tential. MOMENTUM: RSI is over the 50-line again
Target 2.27 2.5 / 2.70 (but we need more positive signals from MACD and OBV)
CHARTS BOOK 6


EL KAHERA FOR HOUSING & DEV. RIC: ELKA.CA

TREND: Medium-term trend still in a balance state, Short-Term traders (Days)
First Second while short-term one is under a stress test (The security & Medium-term Traders
faces a juncture zone @ 4.35 / 4.4 and only a decisive up-breakout (Weeks) are advised to Hold,
Support 4.20 / 4.25 4.15 Buy a breakout over the first
over this range, with explosion in trading activity, would alter the
short-term look) resistance zone (provided,
Resistance 4.35 / 4.40 4.5 / 4.7 Volume is high and MACD is
MOMENTUM: MACD faces a resistance (we have
Stop loss 4.15 - nearly the same message from MACD; the security still weak and, over the zero), and Cut Loss-
so far, we have no early signals that a breakout will take place.) es below 4.15
Target 4.70 5.0

CHARTS BOOK 7


SIXTH OF OCTOBER DEV. & INV. RIC: OCDI.CA

TREND: A medium-term and a short-term sideway Short-Term traders (Days)
First Second moves are easily seen with naked eyes (Just trade a range are advised to Buy a breakout
and Buy / Sell breakouts.) over 16.85, take profits near
Support 15.70 13.0 18.60 and then Buy a
breakout over later level. Cut
Resistance 16.85 18.60 MOMENTUM: MACD @ support (RSI over the 50-line losses below 15.7. Medium-
again and has successfully reversed the down trend, but the OBV is
Stop loss 15.6 12.9 bearish with series of lower highs, however, we have an early sig- term Traders (Weeks) are
nal that clearing the first resistance level may take place.) advised to Buy a breakout
Target 18.5 24.0 over 18.60. Take profits near
CHARTS BOOK 8


RAYA HOLDING CO. RIC: RAYA.CA

TREND: The trend is down after a decisive breakout Short-Term traders (Days)
First Second below the classic H&S topping pattern (The security is are advised to Sell a breakout
below the Ichimoku Cloud (not shown), which is bearish, no Buy below the 4.28 level. In case,
Support 4.28 4.03 the security successfully pen-
signal in the P&F H/L chart and as long as the security fail to deci-
sively penetrate the second resistance range, you shouldn't think etrated, all traders, especially,
Resistance 4.40 / 4.48 4.60 / 4.70 about any buying opportunity in the security.) the Long-term traders
Stop loss 4.25 - MOMENTUM: RSI short-term positive divergence (Months) are advised to Buy
signal has been materialized (but we still need to see a a decisive breakout over a
Target - - breakout over both the 50-line and a declining trend line.) second resistance range.
CHARTS BOOK 9


EL SAEED CONTRACTING RIC: UEGC.CA

TREND: The medium-term trend is clearly down Short-Term traders (Days)
First Second (and the short-term one is taking the lateral shape after failing to Are advised to trade a range,
attain the declining resistance line of the falling channel. As a re- Buy a breakout over 1.15
Support 1.12 1.08 sult, different trading techniques should be used. A decisive up- and take profits near the se-
breakout, with heavy volume, over 1.15 may open the gate for an- cond resistance zone. Medi-
Resistance 1.15 1.20 / 1.25 other test to the second resistance level. um-term Traders (Weeks)
MOMENTUM: MACD found support @ the zero are advised to Sell rallies
Stop loss 1.07 -
line (which is bullish, so far)
Target - -

CHARTS BOOK 10


UNIVERSAL CO FOR PACKAGING MATERIALS RIC: UNIP.CA

TREND: Testing the low with nearly no activity (is a Short-Term traders (Days)
First Second major bullish signal, keeping in mind the structure of the possible Are advised to Buy on a dip
Bottom formation. When you see a significant pick up in trading and/or Buy a breakout over
Support 7.5 / 7.60 7.3 activity with a breakout over 8.4 / 8.5, you need to call your broker 8.40 / 8.50. Medium-term
and tell him to Buy in.). Don’t be aggressive here, just wait for a Traders (Weeks) are advised
Resistance 8.10 8.25 decisive up-breakout to materialize. Conservative long-term traders to Buy a breakout over 8.4 /
should wait for a decisive up-breakout over 10.0. 8.5. All traders are advised to
Stop loss 7.5 7.3
MOMENTUM: RSI is over 50 and rising, MACD is Buy a breakout over 10.0.
Target 10 15 over zero and rising
CHARTS BOOK 11


THE GENERAL CO. FOR CERAMIC & PORCELAIN RIC: PRCL.CA

TREND: The medium-term trend is up again (Taking Short-Term traders (Days)
First Second out the early July swing high @ 4.44, with multiple closes over it & Medium-term Traders
and with explosion in trading activity, signals a beginning of a new (Weeks) are advised to Buy a
Support 4.45 4.25 up-trend.) pull back move to the
MOMENTUM: New high in MACD & Important breakout range (4.25/4.45)
Resistance 4.75 / 4.80 5.0 and/or Buy a breakout over
resistance in RSI (indicate that a consolidation near the
Stop loss 4.20 - breakout range (4.25 / 4.45) may continue for some time before a 4.80. Hide in cash below the
serious up-thrust move.) rising green trend line.
Target 5.0 / 5.30 6.0

CHARTS BOOK 12


ELECTRO CABLE EGYPT CO. RIC: ELEC.CA

TREND: Down to sideway as seen via the weekly All traders are advised to
First Second chart. Long-term trend is bearish as seen via the Sell Rallies.
Support 0.73 / 0.74 - Ichimoku Cloud (price and lagging line is below the
A decisive up-breakout over
Cloud) the first resistance level
Resistance 0.83 0.90 should triggers your Buy stop.
Stop loss 0.68 -
MOMENTUM: Long-term momentum readings is
below the mid-points and accelerating
Target - -

CHARTS BOOK 13


GMC GROUP FOR INDUSTRIAL COMMERCIAL RIC: GMCI.CA

TREND: The security tries to bottom out ( a decisive up Short-Term traders (Days)
First Second -breakout over 2.50/ 2.60 is a must before jumping to bullish con- are advised to Buy dips
clusion. - Long-term Ichimoku Cloud is still very bearish)
Support 2.47 / 2.50 2.35
Medium-term Traders
MOMENTUM: Bullish up-breakout over symmet- (Weeks) are advised to Buy a
Resistance 2.60 2.85
rical triangle in both the Price Momentum RSI & the decisive breakout over 2.62
Stop loss 2.40 - Volume Momentum OBV (This indicates that price may do
Target 3.5 - the same in the near future.)

CHARTS BOOK 14


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Mohandessin You can trade online through Jazira Securities online
Tel: (+202) 3760 9983 - 37609941 trading portal ...
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for further information..

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Ramy Rashad, CMT Senior Technical Analyst (+202) 3760 9973 +20100 8385 501 rrashad@jaziracapital.com
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Disclaimer
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CHARTS BOOK 15

Charts book egx30 index rebalance - august 01, 2012

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Charts book egx30 index rebalance - august 01, 2012