DFMGI tracks Dubai Financial Market which is the largest financial trading exchange in the United Arab Emirates. Dubai has emerged as a global city and business hub of the Middle East, it’s contently growing bigger and becoming one of most expensive city in the world. The Dubai Financial Market (DFM) was founded on 2000, looking at it’s index chart you may say it’s quite different from the rest but we do believe in EWF that there is only one market and every instrument is related to another. Which explain having a different structure or sequence doesn’t necessarily mean that’s trading on its own, because the bigger cycles are the same among the different groups of the market.

DFMGI Elliott Wave View

Last year, DFMGI rallied like the rest of world Indices and we can notice that it has a bullish structure in wave (1) unfolding as 5 impulsive waves from January 2016 low followed by a flat correction during the middle of the year in wave (2) and finally it managed to resume the rally from November lows to make new high.
The index recently ended wave 2 pullback as a double three correction reaching equal legs area 3467 – 3423 from which it bounced higher and still needs to break above February peak to open more extension to the upside. The correction in wave 2 may persist if DFMGI manage to break 03/29 low but it should remain supported while the pivot at 3195 low keeps holding.

 

Zooming out to the weekly chart, we can notice that early this year DFMGI broke above the descending trend-line from 2014 peak which is confirming the bullish reversal started last year. Consequently, if the Index manage to resume higher then the next target for the bulls would come around 4213 – 4840 area.

 

In case DFMGI holds below February peak and the pivot at November low gives up, then the Index could have ended the whole cycle from 2016 low and it will be looking to do a deeper correction toward the 50%-61.8 % Fibonacci area ( 3169 – 3034 ) before it can resume the move higher.

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