UAE markets provide renewed hope | GulfNews.com

UAE markets provide renewed hope | GulfNews.com:



"Last week the Dubai Financial Market General Index (DFMGI) ended essentially flat at 5,100.68, up 13.21 or 0.26 per cent. Volatility was low, while volume improved to a four-week high. Market breadth leaned clearly on the bullish side with 27 issues advancing, while 11 declined.



Despite the recent correction of 15.95 per cent the DFMGI has mostly stayed above its medium-term trend line, since its start from the September 2013 swing low. The index dropped below the line only briefly and quickly recovered several weeks ago. Using a 55-day exponential moving average (ema), a similar tool to a trend line, produces the same result. Each is supportive of the probability that, even though not much upward progress was made last week, the index is gaining strength. Higher volume and positive market breadth further supports this scenario. In addition, last week ended above the prior week’s high, although just barely, a short-term confirmation of underlying strength.



At the same time, the DFMGI has rallied up into the lower half of a two-week resistance zone going up to the most recent peak of 5,406.52. That zone may continue to hold an advance in the near-term. Momentum needs a pick up to get through it, with a daily close above it needed for a signal that the uptrend is continuing. Until then the uptrend line and 55-day ema are good tools to identify support areas where the index should hold above if it is to continue to gain. The 55ema is now at 4,838.71, while the low from two-weeks ago, also identifying potential support, is nearby at 4,841.54."



'via Blog this'