AhmedAminTC’s Telecom Egypt EGX:ETEL Technical Overview — TradingView

current situation
If weakness persists:
• Breakout of support at 59.60
It is a key support level and represents:
o Level of profit protection
o Stop loss levels for short term traders
When it is broken, we expect the profit-taking movement to extend to:
56.00 pounds
This is the next area of ​​support.
recommend
It is recommended to take some profits near the current resistance level of 68.50
Also strictly adhere to the 59.60 level as stop loss/profit protection.

1) Current price trend
The stock continues to trade in an uptrend but is currently testing the strong resistance area at 68.50, which has shown signs of slowing momentum over the past week.

2) Current weakness signal (bearish signal)
The following indicators can be clearly observed:
• Shooting star candlestick formed on weekly time frame
→ A negative reversal signal appears in the resistance zone.
• Bearish divergence between price action and RSI indicator
→ Price is forming higher highs while RSI is forming lower highs, indicating waning buying pressure.
These combined signals increase the likelihood that the stock will enter a short-term profit-taking phase.

current situation
If weakness persists:
• Break below 59.60 support
This level is critical and represents:
o Level of profit protection
o Stop loss threshold for short-term traders
If this support is broken, expect deeper profit-taking:
56.00 Egyptian Pound
It represents the next support area.

recommend
It is recommended to take some profits near the current resistance area of ​​68.50.
Also strictly adhere to 59.60 as the stop loss/profit protection level.

financial analysis
ROE – return on equity
number:
20.87% → 25.02% → 29.62% → 35.62%
analyze:
• Return on equity continues to rise strongly, a clear indicator of a company’s ability to improve profitability and maximize returns on capital.
• Indicates high operating efficiency and net profit growth.
Impact on stocks:
A high ROE supports the stock’s medium-term upward trend and makes the stock attractive to institutions during temporary dips.

ROA – return on assets
number:
6.60%→6.57%→5.56%→7.08%→9.27%
analyze:
• Return on assets has trended upward over the past two quarters, indicating improved operating efficiencies and improved asset utilization.
•Recently rose to 9.27%, one of the company’s highest levels in recent years.
Impact on stocks:
It indicates increasing operating strength – as long as price is above support, it will reinforce the uptrend.

Net Profit Margin – Net Profit Margin
number:
30.29% → 26.90% → 26.90% → 30.29%
analyze:
• Margins remain very strong compared to the telecom industry.
• The recent rebound confirms the company’s ability to control costs and improve profits.
Impact on stocks:
A stable margin above 25% will give investors confidence and reduce the likelihood of sharp price declines, even if there is a brief correction wave.

Free cash flow per share – Free cash flow per share
number:
0.21→-1.35→0.11→-4.67→1.33→0.94→0.91→1.31
analyze:
• Unstable free cash flow due to higher capex investment spending (5G, infrastructure expansion).
• But the latest data turned positive, suggesting cash flow is starting to improve.
Impact on stocks:
The recent improvement in free cash flow reduces the risk of severe downside, but does not support strong upside momentum without additional operating results.

Debt to Equity – debt to equity ratio
number:
1.31→1.59→1.83→1.79→1.86→1.59→1.31
analyze:
• Corporate debt is relatively high, but has been trending downward in the past three quarters.
• This decline confirms the improved financial position and reduced reliance on external financing.
Impact on stocks:
Improving debt ratios reduce risks, but continued earnings growth will still be needed to support future upside
financial analysis
ROE – return on equity
number:
20.87% → 25.02% → 29.62% → 35.62%
analyze:
• Return on equity continues to rise strongly, indicating a clear improvement in the company’s profitability and its ability to generate higher returns on shareholders’ equity.
• Reflected high operating efficiency and solid growth in net profit.
Impact on stocks:
Rising ROE supports the bullish outlook in the medium term and makes the stock more attractive to institutional investors during the temporary pullback.

ROA – return on assets
number:
6.60%→6.57%→5.56%→7.08%→9.27%
analyze:
• Return on assets has been trending upward over the past two quarters, indicating improved asset utilization and improved operational efficiency.
• The latest reading was 9.27%, one of the company’s highest levels in recent years.
Impact on stocks:
Rising ROA signals growing operating strength, reinforcing the bullish outlook as long as prices remain above key support levels.

net profit margin
number:
30.29% → 26.90% → 26.90% → 30.29%
analyze:
• Margins remain exceptionally strong compared with the broader telecoms industry.
• The recent rebound highlights management’s ability to control costs and maintain profitability.
Impact on stocks:
Even during a short-term correction, maintaining margins above 25% can boost investor confidence and reduce the risk of a sharp sell-off.

free cash flow per share
number:
0.21→-1.35→0.11→-4.67→1.33→0.94→0.91→1.31
analyze:
• Free cash flow remains volatile due to significant capex (5G investment, infrastructure expansion).
• However, the recent turn back into positive territory suggests early signs of improving cash generation.
Impact on stocks:
The recent improvement in free cash flow helps reduce downside risks, but it doesn’t fully support a strong bullish extension without further operational strength.

debt to equity ratio
number:
1.31→1.59→1.83→1.79→1.86→1.59→1.31
analyze:
• The company’s leverage is relatively high, but it has been declining over the past three quarters.
• The decline reflects healthier financial conditions and reduced reliance on external borrowings.
Impact on stocks:
Lower debt levels reduce financial risks, but continued earnings growth remains critical to supporting a stronger bullish trend.