Elliott Wave Analysis of Dubai Stock Index

Hello Traders from the Middle East. So Dubai Stock index, or the DFM Index, has collapsed today, losing over 7%. Shocking, but the writing was on the wall all along. With the increase in rhetoric about Syria, we just needed a small push and it would have fallen over the cliff! When a move is approaching the end of its 5th wave, any informed investor would have sold off all his shares and waited for the inevitable correction to start. Elliott Wave Analysis of Dubai Stock Index shows that the 5th wave has indeed been completed. a fact that has become evident today, but something we should have anticipated. You can observe from the Elliott Wave charts attached that Dubai index had earlier seen an extended third wave. When you already have an extension in either the first wave or third wave, you should expect the fifth wave to be of normal proportions. Finally, by examining the sub waves of the fifth wave, you could have gotten out of most of your investments close to the top. This is shown in the last chart below. What is the outlook for Dubai Index from here? Well, there are mild supports at the fourth wave level within the just completed fifth wave.But expect any recovery to be mild and short lived. We should choose to exit on a pull back, waiting for the next bull market to be signaled by Elliott Waves sometime in the future.



8 Comments

  • JDXB

    question:
    Are we finished the main ABC correction which we say that (A) was at 2358 and (b) at 2620 and (C) at 2299 ? or we still have more up coming down trend correction which we say (A) wave at 2299 and (B) will be almost 2730 and (C) between 2200 and 1800?

    • JDXB, I wonder if you have read my book FWTFF? If you get a 3 wave correction that seems to be incomplete, and you think that was just an A wave, then the ensuing B wave should be in 3 waves taking it back near the start of the A wave….you clue then is the composition of the B wave, and where you expect it to finish, and you will watch the reaction at the top of the B wave. If the down move from there looks aggressive, perhaps we are going to witness a C wave down. If it is slow, then that will be wave 4 inside a new impulse wave from 2299

      • DFMDXB

        Hi Ramki,

        So, basically If we assume the impulse wave from 2299-2673 is B of ABC correction, the. B should be only three waves (which is the case till now).

        Then if we breakout upward the point 2673 that means the correction completed at 2299, and we intered the wave 3 of 1 of 3 which should target at least 3200-4400 depend if it is extended or not!!

        Does this correct?!

  • essa

    Hi Mr: Ramki

    Is Elliott count is still the same or got changed numbering

    Accept greetings

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