2023-12-18 04:07:00
A lively week is looming at the Casablanca Stock Exchange. On the one hand, we will observe the first listing of CFG Bank on Monday, where strong interest is expected on the secondary market from all categories of investors; and on the other, the BAM Council on Tuesday, where once more, almost all operators expect the status quo to be maintained, the third in a row.
Monetary policy: Sell the news?
This status quo scenario, anticipated for at least a quarter, might serve as a pretext for operators to “sell the news” between Monday and Tuesday, taking advantage of a Monetary Policy Council where a dovish tone will probably be in order to achieve profits.
From a graphical point of view, the formation of a shooting star on Friday, on high volumes, suggests caution on the daily chart of the Masi index (top chart). This pattern might indicate short-term consolidation with support at 12,000 points.
On a slightly more distant horizon, the rebound on the support at 11,700 points last week, anticipated in October, stopped the short-term downward trend as soon as it crossed 12,000 points. This suggests that any profit taking would be short-lived before potentially reaching 12,300 points and thus ending the year on a high for stocks.
Pressure indicators in monthly data show that we are in a marked upward cycle, with an acceleration in buying pressure in weekly data. This configuration reinforces the idea that profit taking, if it materializes, will only be ephemeral.
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