EMAAR: Massive Gap and Rising Wedge Point to Further DownsideHi!
The daily chart for Emaar Properties reveals a significant shift in market sentiment. After a parabolic run, the stock suffered a violent gap down, and the current price action suggests this was not just a flash in the pan, but the start of a deeper corrective phase.
Technical Breakdown
The Exhaustion Gap: The massive gap down from the $17.00 level is the most striking feature of this chart. This is a clear "breakaway gap" that signals a total collapse of the previous bullish trend. These gaps often act as major resistance on any relief rallies, and as we can see, the price hasn't even come close to filling it.
Rising Wedge (Bearish Continuation): Following the initial crash, the stock has formed a Rising Wedge pattern. While it might look like a recovery to the untrained eye, this is a classic bearish continuation structure. The price is drifting higher on diminishing conviction, and the narrowing range indicates that the "Sales pressure" highlighted in the volume profile is starting to weigh heavy again.
Volume Confirmation: Notice the surge in volume during the initial drop (the yellow oval). High volume on a massive downward move confirms that institutional sellers were exiting positions. The subsequent bounce into the wedge has been on much lower relative volume, which typically precedes a breakdown.
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Outlook and Targets
The path of least resistance remains firmly to the downside. The rising wedge is a "ticking clock," and once the lower support line snaps, we expect the downward momentum to accelerate.
Primary Target (9.61): This is the immediate structural goal. It aligns with previous historical consolidation and acts as the first major safety net.
Secondary Demand Zone (8.80 – 8.90): If the 9.61 level fails to hold the slide, we are looking at a move into the grey demand zone. This area represents a critical long-term support floor where we might finally see significant buyer interest return.
Short
