Stocks Looking Weak

We warned on July 14th that the failure of Lebanon's BLOM stock index to react to the formation of the government was a negative signal, and in fact the index has fallen by 5.7% since then, plummeting through its 14-week moving average this week. Despite a bounce this morning, we do not like the look of the weekly and monthly charts, and see scope for a drop to support at 1,700 in the first instance. A fall through this would suggest further losses, potentially to the 1,500 area.

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