Market is under pressure for the last 3 weeks, but for now its at a crucial level and I hope it does not break the support zone. As we are seeing international markets recovering and climbing up exactly the opposite is seen in middle east markets. U.A.E stock markets – DFM & ADX both are witnessing selling pressure as seen in Saudi Tadawul.
Above is the daily chart of FADGI that is Abu Dhabi Stock Exchange General Index. Last closing as of 24th june is at 9238.34 technical the daily closing candle is bearish. But some thing to note here is market have paused exactly at the same level where previously it found resistance and the same zone is now acting as a support. It is a very important level for the market and if “bulls” want to save the market they have to flex their muscles and show some positive price action. Market index is still above 200 day moving average, we can see its been going side ways for weeks at the same time thin volumes are witnessed as traders and investors are not very confident. Market tries to go up in the morning hours but as market inches towards the closing people are not taking home their stocks. My strategy would be the same too quick entries and exits should be planned as markets are very volatile, take your profits home even if it is small.
At the same time lets prepare for more down side incase if this level is broken, another strong level on daily chart is between 8800-9000 that is also near 200 EMA that provides dynamic support & resistance. I hope we dont see market going down till there and recovers from current level. For detailed analysis on ADX you may watch this video and subscribe my youtube channel for regular updates on U.A.E Stock Markets.
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This article is for educational purpose please do your own research before investing.
All the best!!