Welcome to GulfBase Live Support
Abu Dhabi Price Index <.ADI> settled at 2,704.19 point. The index is witnessing a natural correction phase after its failure to cross over the crucial resistance line at 2,780 point, forming a double top pattern on the weekly chart. However, the downwards move could continue in the market but should be limited to 2,685 point (50% level of the Fibonacci Retracements from 2,593 point – 2,777 point), also found there both medium-term (11 weeks) and long-term (50 weeks) moving averages. Knowing that a break below there would trigger 2,665 point (61.8% level) and 2,635 (76.4% level). However, an initial sign of rebuilding the bullish momentum would only occur if the index manages to break above the resistance line at 2,735 point. But to confirm a sharp rally, a cross over 2,780 point is needed. Weekly and daily “RSI” indicators are currently neutral.
Strategy: Medium-term and long-term investors who would like to stay in the market should be aware if the index drops below 2,685 point.