DFMGI

• Potential inverse head & shoulders bullish reversal setup in the daily chart for the Dubai Financial Market General Index (DFMGI). (Exposure can also be accessed via iShares MSCI UAE ETF (UAE), traded in the U.S. Although average volume is relatively low.)
• Pattern occurs off December 2,429.12 low, which completed a 34% 14-month decline from the October 2017 swing high.
• Bullish 14-day RSI divergence.
• Breakout triggered on decisive move above 2,561.
• Minimum target objective of approximately 2,716.80 as derived from the head & shoulders pattern (previously support zone from October 2018 & in area of 1.618 Fibonacci projection).
• Other potential targets are highlighted on the below chart and derived from prior price and Fibonacci confluence levels.
• Current pattern is invalid on a daily close below the right shoulder at 2,479.37.

iShares MSCI UAE ETF (UAE)

• Potential head & shoulders bottom setting up.
• Breakout occurs on decisive rally above the most recent swing high of $14.30.
• Minimum target objective from the pattern of $15.16.
• UAE ETF includes a mix of UAE stocks, not just Dubai exchange traded, but also Abu Dhabi & UK exchanges.
• Pattern is invalid on a daily close below the right shoulder of $13.76.