The Dubai DFMGI index continued its recent bearish move with relatively moderate liquidity that does not reflect the presence of high selling forces, but rather the fact that it is reluctant to trade. According to technical theories, unlike the rise that requires purchasing power to push the indicators higher, the decline does not necessarily require high volumes, where there is enough interest and a desire to trade in order to drop indicators for the simple reason of the absence of buyers. Which is known as the Law of Attraction.


On the one hand, we believe that the decline is due to two reasons (internal and external). The first reason is the internal distribution of Emaar, which seems to have not received the result positively or did not live up to their ambitions, which was reflected on the share price, especially from the perspective of traders the latest catalysts for this General. Of course, due to the relative weight of Emaar stock, the general index was affected by the decline, which was reflected in the other shares trading after the index dropped from 3400 levels again


While the second reason is to draw traders' attention and attention to the phenomenon of digital currencies and their trades, which swept unprecedentedly in the trading community in the region in light of the insane price increases, and fueled by the media and media media in addition to the offers of specialized companies both real and imaginary. Which resulted in the reluctance to trade in the local market the same as the former and the absence of buyers who preferred to enter the experience of currency trading and running behind the so-called rapid wealth, and thus the decline of local indicators as we mentioned the causal relationship at the beginning of the conversation.


Dubai Financial Market Index

Technically: the index has achieved a new bottom breaking the previous bottom 3382 to close at the end of the week at 3355 to start with a downward wave we believe that the latter interspersed with some secondary rebounds before the formation of a bottom and the beginning of the recovery and the formation of a new upward trend over the next quarter, Previous analysis where I pointed to targeting the index levels 3503 as a rebound and that the index will remain weak below 3550-3580 and return to a recent decline may extend to levels of 3307 or even 3250, which we see now.

On the level of secondary rebounds, the index is currently facing the first support levels in the region between 3333 and 3307, which are expected to be strong enough to form a technical rebound that will then be assessed as final or not.