EGX70 Index on a 4-hour timeframe, key price structures, critical support and resistance levels, and momentum insights.

/ English, Expected Moves / By

January 1, 2025

EGX70EWI Chart 112025 Mckvay April 20, 2025
1. Overview
  • This chart represents the EGX 70 Index on a 4-hour timeframe.
  • It highlights key price structures, critical support and resistance levels, and momentum insights.
  • The analysis focuses on the current corrective phase following a significant uptrend.
2. Trend Analysis
  • Primary Uptrend: The price followed a strong upward channel, forming higher highs (HH) and higher lows (HL).
  • Current Corrective Phase: The trend shifted with a Change of Character (CHoCH) and subsequent Break of Structure (BOS) to the downside.
  • Correction Details: The decline spans 33 bars (22 days), with a total drop of -8.08%.
3. Key Price Zones
  • Resistance Levels:
    • 8,661.17 (Strong High): The recent peak and critical resistance level.
    • 8,400 – 8,600 (Premium Zone): Reflects selling pressure and marks a key resistance range.
  • Support Levels:
    • 8,143 (Current Level): The price is attempting to stabilize at this level.
    • 7,962.44: A critical support zone aligning with the previous BOS.
    • 7,256.75: Major support, representing the lower boundary of the range.
  • Equilibrium Level (~6,981): A long-term balance point within the broader price structure.
4. Market Structure
  • BOS (Break of Structure): Several BOS points confirm the bearish transition within the current corrective phase.
  • CHoCH (Change of Character): Indicates a shift from the bullish trend to the bearish correction.
5. Momentum Analysis
  • Indicator: Momentum is oversold (~17.6), suggesting potential stabilization or a bounce.
  • Divergence Signals: Slight positive divergence between the oscillator and price suggests weakening bearish momentum.
6. Volume Insights
  • Declining Volume: Indicates reduced selling pressure during the correction, a typical sign of market consolidation.
7. Outlook
  • Bullish Case: Holding above 8,143 and reclaiming 8,400 could lead to a recovery toward the premium zone (~8,661.17).
  • Bearish Case: A breakdown below 8,143 could lead to a test of 7,962.44 or lower levels like 7,256.75.
Conclusion: The EGX 70 EWI index is stabilizing at critical support (~8,143). Oversold momentum and declining volume suggest potential recovery, but failure to hold above key supports could lead to significant bearish continuation.

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