EGX30 AnalysisEGX 30 IndexEGX:EGX30Adhamm_MoohamedNotice how price reacts to a previously drawn zone. The price reached that zone exactly, then entered a distribution / exhaustion phase (despair phase) before moving down to a lower support area. After that, a new accumulation phase started, where the price stabilized and selling pressure was gradually absorbed. Finally, a markup (public participation) phase occurred with a breakout above the last intermediate swing high, which often signals the beginning of a new bullish move. The Egyptian stock market has been correcting for about a month and a half, which is quite normal after the strong rally seen from late 2024 through 2025 and into early 2026. There are five main reasons behind this correction: Profit-taking Many stocks had gained 100%–200% or more in a relatively short period, prompting institutional investors and large portfolios to lock in profits. High Interest Rates Interest rates remain relatively high, making fixed-income investments more attractive and drawing some liquidity away from equities. Global Uncertainty Geopolitical tensions, oil price fluctuations, and volatility in global markets have led investors to reduce risk exposure in emerging markets, including Egypt. Strong Technical Resistance As the market approached historical highs, selling pressure increased from investors taking profits at key resistance levels. Sector Rotation Liquidity is not leaving the market entirely; instead, it is moving between sectors. As a result, while the overall index appears weak, some stocks continue to perform well. Is this correction a concern? At this stage, it does not appear to be a market collapse or a long-term trend reversal. After a significant rally, the market was due for a healthy correction, and it remains relatively close to its historical highs.