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Salik Company PJSC

Salik Stock Technical Analysis

22
Salik Stock Overview
  • Ask Price: AED 4.974 – Current Price: AED 4.540
  • Daily Change: -6.20% (sharp decline)
  • High Price: AED 5.660 – Low Price: AED 4.540
  • Bid Price: AED 4.817


Technical Analysis
1. General Trend Analysis
  • The stock is in a strong downtrend, with a significant price drop from AED 5.6 to AED 4.54.
  • The price is moving below its moving averages, indicating weak bullish momentum.
  • The presence of strong bearish candles, along with increasing trading volume, confirms continued selling pressure.


2. Support and Resistance Levels
  • Key Support Level: AED 4.50 (If broken, the price may drop further to AED 4.30-4.20).
  • First Resistance Level: AED 4.97 (current ask price).
  • Second Resistance Level: AED 5.20 (significant moving average area).


3. Technical Indicators
A. Moving Averages
  1. 50-day moving average is above the current price, confirming the downtrend continuation.
  2. 200-day moving average remains flat but is close to a bearish crossover with shorter averages, reinforcing bearish sentiment.


B. Relative Strength Index (RSI)
  • RSI is currently below 30, indicating oversold conditions, which could lead to a short-term rebound.
  • However, RSI staying below 50 suggests that the overall trend remains negative.


C. Trading Volume Analysis
  • Increased trading volume during the price drop suggests strong selling pressure.
  • If volume remains high without a price rebound, the decline could continue.


D. Other Indicators
  • Bollinger Bands: The price has broken below the lower band, signaling strong downward momentum with a potential minor bounce.
  • MACD: Remains in the negative zone with a bearish crossover, suggesting continued weak momentum.


Future Predictions
1. Possible Bullish Scenario
If the price rebounds from AED 4.50, it could rise toward resistance levels at AED 4.97 – 5.20.
Signs of a reversal require:
  • RSI moving back above 40.
  • Increased buying volume at support levels.
  • A bullish closing candle above the 50-day moving average.


2. Possible Bearish Scenario
  • If the price breaks below AED 4.50, it may drop toward AED 4.30 – 4.20.
  • A weak RSI and MACD remaining negative indicate that further downside is possible.


  • Overall Trend: Bearish.
  • Oversold signals (RSI <30) may lead to a short-term rebound.
  • AED 4.50 is a critical level, if it holds, a rebound may occur, but if broken, further decline is likely.
  • Cautious investors should wait for clear reversal signals before entering, while high-risk traders may look for a short-term bounce.


Recommendation: Exercise caution, wait for technical confirmation before entering a position, and closely monitor the AED 4.50 support level.
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Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Technical IndicatorssaliksalikdfmsalikdubaisalikdubaistocksaliksharepricesalikstalkstocksalikstocksalikstockpriceTrend Analysis
bbitar
Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.