"After last week’s strong performance in both UAE markets the near-term outlook is pointing higher. This is supported by an upside breakout in oil a couple of weeks ago, along with renewed strength in global equity markets, such as in the US, Germany, the UK and Hong Kong.
Dubai Last week the Dubai Financial Market General Index (DFMGI) gained 127.49 or 5.63 per cent to close at 2,391.63. Strength was widespread with 23 advancing issues and only six declining, while volume was just slightly lower than the prior week.
Given last week’s powerful advance, along with the Abu Dhabi market exceeding prior highs, it looks like the recent 12.7 per cent correction in the DFMGI may be over. A daily close above the recent peak of 2,500.56 is now needed to confirm the sustainability of last week’s rally and will signal a continuation of the 18-month uptrend. The index would then be targeting the 2,712 price area, followed by a potential monthly resistance zone from approximately 2,870 to 3,049."
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