ADNOC Drilling (ADX) – Head & Shoulder Pattern Forming!

Greetings Traders,

The ADNOC Drilling (ADX) chart is showing signs of a potential Head & Shoulder formation, which could signal a short-term correction before the next reversal phase.

Key Observations:

• The price action is shaping up for a Head & Shoulder pattern; confirmation of the right shoulder will complete the setup.
  
• If the price drops near AED 5.62, it will validate the pattern and may trigger a move down toward the Reversal Zone (around AED 4.80 – 5.00).
  
• Volume and RSI divergence support the possibility of this correction phase.
  
• The 200-day moving average is nearby, adding importance to the neckline region.
  
• After reaching the reversal zone, a bullish rebound is likely if buying volume returns.
  

Strategy:
Monitor the neckline closely. If the pattern confirms, expect a short-term pullback before a potential recovery from the reversal zone. Wait for confirmation before taking new long positions.

Happy Trading & Stay Disciplined!