Last week the Dubai Financial Market General Index (DFMGI) bounced 16.87 or 1.06 per cent to close at 1,601.39. Advancing issues of 22 led declining of seven, while volume improved to the second highest level in nine weeks, including a couple holiday weeks.
For the past seven weeks the DFMGI hasn’t moved much as it’s stayed within a narrow range between resistance at 1,630.96 and support at 1,575.28. A daily close above the top of this range will give the index a chance of reaching the recent high of 1,656.20, and possibly exceeding it. If this occurs the next areas for potential resistance are around 1,706.60, followed by 1,778.25.
So far the retracement off the 1,656.20 high has been relatively minor, only 4.9 per cent, or a little more than 33 per cent of the six-month uptrend begun from the early-June low of 1,425.34. And, the index remains above support of its 200 daily exponential moving average (ema). These are signs that underlying buying strength remains. Whether it will be enough to propel the index higher from here remains to be seen.
No comments:
Post a Comment