ADX Index To Go Down?
Abu Dhabi Stock Exchange is in a strong uptrend with fundamentals in place and more new IPOs & listings ADX is flying higher and higher. Over all its trending higher, on the way up small corrections are healthy. ADX have launched ADX15 on 30th of March 2022.
What is ADX15?
The FADX 15 is the first co-developed index under ADX’s strategic partnership with FTSE Russell. Positioned to be the main benchmark for the ADX market, the index is specifically designed as a tradable index. For the broader investor community, the index is apt for creation of index products like derivatives and ETFs.
Lets Talk Technical
As I just mentioned in a trending market we should wait for a correction after a push phase. Mostly what we are seeing in the market for the last week is a correction phase. I had uploaded a short video watch it here.
Some important technical points to learn on this chart. Firstly we can see a bearish divergence. What is a bearish divergence? we can learn about divergence by adding a indicator on the chart – Relative Strength Index, RSI in simple worlds when the index or stock is going higher but the RSI indicator is sloping in doing down. Usually this occurs after a strong uptrend and it indicates time for correction is now due. I was expexting a correction as i had mentioned about this in my short video as well after identifying it on the chart.
Will The Index Go Down From Here?
Always remember in a strong and a established uptrend market cannot just reverse immediately it have to make some price action and then make a reversal. Till the time we dont see any bearish price action any dip should be considered as a buying opportunity. Market index is at 9970.11 as of 15/04/2022 after hitting all time high of 10171.82.
Support zone is very near and I think market should hold here before moving up, Fridays closing is a Doji candle it means market is indecisiveness in market. Doji candle is printed right into the support zone which is also support by 20 day moving average also not to forget the long term trendline which is very near to the candle.
We got more than 3 confluences so I think market should reach at this important support zone. First resistance is at 10171.82 and I think once its taken out we will see a new high and market can go up to 10290 very soon.
Both Dubai Stock Market & Abu Dhabi Stock Exchange are very bullish take advantage of this and make profit by investing.
Stock Picks For ADX
- Rak Properties
- Aldar Properties
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This article is for educational purpose please do your own research before investing.
All The Best!!