Will The Market Make A New High
Dubai Stock Market Index as of today is at 3350.10 after hitting the resistance at 3509.10 on 03 March 2022 for the last 2 weeks we are seeing market is under pressure. Long term trend is still bullish & the market index is above important moving averages ( 50, 100 & 200)
Heavy weighted stock EmiratesNBD is pushing down the index as of now the stock hit 15.50 and the following day it gapped down due to the dividends as announced by EmiratesNBD.
The Geo Political Factor
Another factor that is not only effecting Dubai Stock Market but also international stock exchanges. Russia – Ukraine issue is very sensitive to the market – Stocks, Oil, Gold & many more are effected due to this war. As the peace talks continue so far with out any positive outcome markets will be very volatile.
Lets Talk Technical
Dubai Stock Market Index is at a minor support level just near the 20 day moving average. Below it we have 50 day moving average that is a stronger support that is at 3300 level.
I see no chart damage here and in fact its healthy for the market to come down for a correction and then making a big move to the upside. Parabolic moves are dangerous for the market thankfully we don’t see in Dubai Stock Market. I see 2 scenarios both are bullish.
Scenario 1 – Market may hold right here where it is as of now and spend 2 to 3 days making small candles gathering energy to make a bigger move to the upside and hitting the near term resistance of 3500 level.
Scenario 2 – Market may come down to retest lower support zone that is at 3300 level which is a strong support for the market.
If in Mondays session “biggies” like EmiratesNBD, DIB, Emaar, can hold at their current level market will take a breather and accumulate buyers gearing up for next big move. I am very bullish and I think market will cross 3500 level very soon.
Check out the video on my YouTube Channel.
Stock Picks For Next Week
- Emaar Properties
- Emaar Development
- Dubai Islamic Bank
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Please do your own research before inverting this article is just for educational purpose.
All The Best