In-Depth Financial Analysis of Commercial Bank of Dubai P.S.C. (CBD) Stock

Company Profile:

Country of Origin: United Arab Emirates (U.A.E)

Commercial Bank of Dubai PSC (“the Bank”) was incorporated in Dubai, United Arab Emirates (U.A.E.) in 1969 and is registered as a Public Joint Shareholding Company (PJSC) in accordance with Federal Law No. 32 of 2021. The Bank is listed on the Dubai Financial Market. The Bank’s principal activity is commercial and retail banking. The registered address of the Bank is CBD Head Office, Al Ittihad Street, P. O Box 2668, Dubai, United Arab Emirates.

Details about subsidiaries and an associate:

• CBD Financial Services LLC
• CBD Employment Services One Person Company LLC
• Attijari Properties LLC
• Noor Almethaq Real Estate Development LLC
• CBD (Cayman) Limited
• CBD (Cayman II) Limited
• VS 1897 (Cayman) Limited
• National General Insurance Co. (PJSC)

Trend Analysis

Analyzing the price data from January 2023 to September 2024, we observe that CBD stock had its highest price on 2024-02-29 at 8.16 AED and its lowest price on 2023-12-06 at 4.79 AED. The overall trend shows significant volatility with a general upward movement from early 2023 to mid-2024.

Technical Analysis

Technical indicators such as Moving Averages (MA) suggest that the stock has experienced several bullish and bearish phases. The 50-day MA has crossed above the 200-day MA multiple times, indicating potential bullish trends. However, the Relative Strength Index (RSI) has shown overbought conditions on several occasions, suggesting caution for potential investors.

Support and Resistance Analysis

Support levels are identified around 4.60 AED, 5.00 AED, and 6.00 AED. Resistance levels are observed at 7.00 AED, 7.50 AED, and 8.00 AED. The stock has tested these levels multiple times, indicating strong market sentiment around these price points.

Volatility Analysis

The stock has shown high volatility, especially during the first quarter of 2024. The Average True Range (ATR) indicates that the stock's price can swing significantly within a short period. This high volatility can be attributed to market reactions to financial reports and macroeconomic factors.

Pattern Recognition

Several chart patterns have been identified, including head and shoulders, double tops, and ascending triangles. These patterns suggest potential reversals and continuations in the stock's price movement. For instance, an ascending triangle pattern observed in July 2024 indicated a bullish breakout, which was followed by a significant price increase.

Conclusion

The Commercial Bank of Dubai P.S.C. (CBD) stock has shown a mix of bullish and bearish trends, with significant volatility. Investors should consider the identified support and resistance levels, technical indicators, and recognized patterns before making investment decisions. The stock's highest price was on 2024-02-29 at 8.16 AED, and its lowest was on 2023-12-06 at 4.79 AED, reflecting its volatile nature.