Egypt Index ETF recovers to challenge its all time high.Egypt Index ETF Market Vectors (EGPT) weekly chart suggests a very bullish scenario for the market. Let's take a walk along its history first to draw a vivid picture of its future.
The index declined sharply after its inception due to political turmoil in Egypt, moving from approximately 90.00 to 37.00. Then a rebound to 64.00 followed by another decline to test 37.00 at which a new strong rally has taken off, supported by overall positive political sentiment. This rally managed to breakout above resistance level 64.00, forming a perfect shaped double bottom. The story doesn't end here, the index formed another consolidation above the broken line, a bullish pennant, to confirm the completed double bottom pattern.
So, what does this mean after all? The index is expected to move strongly upward, targeting its all time high at 90.00, which-weirdly enough- is the target of the double bottom pattern. But, to reach that target, two possible scenarios are at hand. First, a strong rally to that directly, or a rally to resistance level 80.00 followed by a setback then another rally to 90.00. Both scenarios are possible but the latter is more likely than the former.
Anyhow, the index is in a strong bull rally that will push it as high as its historical peak.
Buy!
