Salik Stock Technical AnalysisSalik 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
50-day moving average is above the current price, confirming the downtrend continuation.
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.
