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Emaar could restore the bullish stance to Dubai

Posted: 02/24/2013 - 10:55 am

On February 18, we said that Emaar (EMAR) was at a crossroad and we advised paying close attention to the stock’s price action around the key resistance at 5.00. Our advice was to lock in some gains around 5.00 while holding the remaining positions with a stop at 4.92. It was unclear what the stock would do at that key barrier and caution was in order (read: Emaar at a crossroad, pay close attention).

After trading sideways for a week, the stock appears to be breaking out. Today’s rally at the open will carry bullish implications if the stock manages to hold on to its gains.

In fact, the intraday timeframe indicates that the stock is already back in bullish mode.

In short, we believe today’s move in Emaar could prove to be a game changer and keep alive the market rally. We advise holding the existing positions and look to possibly add more.

A strong close in Emaar by the end of today’s session will mean that we will have to put on hold our recent shift to a cautious stance on the Dubai market.

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