Caution Required On Stocks

While we remain bullish on Morocco equities over the medium to long-term, we are becoming slightly short-term cautious. Although the index continues to surge on, rising to a new all-time high of 9,908 today, and the recent price action does not suggest that the bourse is currently undergoing a reversal, there are a few warning signals. Firstly, the bourse is trading a long way (15.6%) from its 14-week moving average (MA), the largest historical divergence on record in absolute terms. In percentage terms, the market has not been this far away from its MA since February 12 this year, when

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