Dubai Financial Market in Correction Phase

Dubai Financial Market Index closed the previous session at 2,344.76. The index could correct further if it moves below 2,265. However, the index held for a while above 2,265, before resuming its upward journey. On June 03, 2013, it ended in a small body candlestick formation with an upper shadow, indicating profit booking at higher levels. In addition, daily RSI is displaying negative divergence; this suggests it could continue to decline in the near term.

On Monday, the index failed to cross the previous session’s high and ended in a bearish candlestick formation. Going forward, if it fails to hold above 2,324 (20-day EMA), the index could correct to 2,290 and 2,200. Conversely, it may face resistance at 2,410 and 2,470 in the near term.

Medium- and long-term investors can stay in the market as long as the index closes above 1,950.

Emaar Properties ended the day at AED5.600. As evident from the charts, the stock had been on a continuous uptrend, as defined by the pattern of higher peaks and troughs. However, the trend seems to be reversing; this is evident from the fact that the stock broke its 20-day EMA and closed below the previous swing low in a bearish candlestick formation. On the daily charts, RSI displayed negative divergence; subsequently, the stock corrected. If the stock closes below AED5.560, it could correct to AED5.450 and AED5.300.
The stock looks like entering the bearish territory, at least for the short term. If it drops below the support level of AED5.560, the stock can correct to AED5.450 and AED5.300.

Dubai Islamic Bank closed the previous day at AED3.410. The stock peaked at around AED3.660. Since then, it has been facing resistance there. On Monday, it failed to cross the previous session’s high and ended in a small bearish candlestick formation. Daily MACD line is below the signal line; this suggests the stock could continue to correct in the near term if it trades below AED3.350. Daily RSI is declining after testing overbought territory, reaffirming this projection. If the stock trades below AED3.350, it could fall to AED3.250 and AED3.170. The short outlook for the ssock is bearish.

You may like the following related posts
Dubai Stock Market Rapid Stumble Explained The stock market in Dubai saw a 10-month record decline recently. DFM General Index witnessed a decrease of 6.7%, which is the biggest since August 20...
Dubai Financial Market gains nearly 100% in 2013 Dubai has a new record to brag about! The city's stock market doubled in value this year. The Dubai Financial Market Index hit a fresh five-year high...
DFM General Index posted highest closing since November 2008, but enthusiasm sli... Dubai’s benchmark stock index rose to the highest in more than five years on Sunday. Investors' sentiment remains upbeat as the authorities announce...
Dubai Financial Market performance in September 2013 The Dubai Financial Market General Index up 9.5% to 2762.5 points at the end of September compared to 2523.1points at the end of August. At the secto...
UAE Financial Markets Capitalization by August End At the end of August 2013, market capitalization of companies listed on the DFM index stood at USD52.3bn vis-à- vis USD53.4bn at the end of the prev...
Dubai Financial Market in Correction Phase Dubai Financial Market Index closed the previous session at 2,344.76. The index could correct further if it moves below 2,265. However, the index held...

Leave a Reply

Your email address will not be published. Required fields are marked *