Time For Correction?
Emaar is trending higher and still holding at a very good level. But let us not forget any stock or index when moves up aggressively have to come down for a correction. This will not be considered as a reversal but again a good buying opportunity to say “buy the dips”. I had earlier recommended this stock at a very good level if you would like to learn how the price action unfolds then check out my previous article on Emaar click here.
Emaar Share Price as of 01/04/2022 is 5.99 weekly closing is also bullish. So is there any sign of worry? lets analyze the chart in detail.
Lets Talk Technical
Lets have a quick recap, Emaar was previously struggling to cross 5.00 that was a strong technical & psychological resistance zone. Once this level was broken there was no looking back from here. Emaar rallied 23% in a short time breaking resistance levels in between 5.00 – 6.15 which is phenomenal.
But let us understand something very important that after this strong push to the upside we should expect a small correction that will be healthy for this stock. Profit booking is very normal after a rally, people entering at current level will be at higher risk as their stop loss will be way to wide and profit booking can start any time. As of now Emaar is in a overbought condition on RSI indicator which is a momentum indicator.
Looking at the current volumes we can see not many investors are exiting their positions so looks like this is just retailers booking the profits and “Big Boys” are still holding their “guns”. Price is still above moving averages both 20 & 50 are bit far from the current price. Averages are like magnets they like to be with price the more far they get a correction is expected. I am very bullish on Emaar but I would like to see a small correction, I think it will hit 7.00 very soon.
Important support levels that have to be considered during correction are marked in RED on the chart above. First support zone is at 5.80 and then 5.60 those of you have missed this rally do not worry market will give you a chance at support levels so keep STALKING.
Over all Emaar Share Price is expected to go higher, dividends are coming up!!
If you would like to learn stock trading and start a income then join my mentorship program where I teach each and every element of Technical Analysis in detail click here for more information.
Please do your own research before investing this article is for educational purpose.
All The Best!!