As readers have no doubt heard (or perhaps not), after ripping over 300% the past 2 years, the Dubai stock market is now crashing. It has fallen some 27% since topping in May 5 weeks ago.

It is now approaching the first major support area on the chart around 3800-3900. This area includes a confluence of important levels:

• 38.2% Fibonacci Retracement of the 2012-2014 rally
• 200-Day Simple Moving Average
• Previous intermediate-term low in March

We don’t recommend trying to catch knives, especially genuine crashes; however, this area may provide the first relief in the selloff. Some related ETF’s include $MES and $GULF. (Ed: adding the iShares UAE ETF, launched May 1…oops. Chart added below.)

Good luck.