Home > Market Commentaries > Dubai: failed to break, just as we expected

Dubai: failed to break, just as we expected

Posted: 11/27/2012 - 9:44 am

On November 25, we reiterated our bearish view on the Dubai index (DFMGI) and we advised traders to sell into any rebound to the 1620-1630 zone (read: Dubai: sell the rebound).

Indeed, the DFMGI bounced to 1625 at which point selling pressure emerged pushing the index back to 1589. The move validates our latest call to sell the market and avoid buying the dips.

As highlighted on the chart, the downside risk remains high and one potential scenario could be that we see the market shift to a sideways trading mode with a downward title.

In short, there is little justification to buy into the market at this point and we would look for a base to form before considering an entry.

click to enlarge

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