Abu Dhabi busts out, while Dubai may not be far behind | GulfNews.com:
"The Dubai Financial Market General Index (DFMGI) gained 82.85 or 2.04 per cent last week to end at 4,146.73, its best performance in eight weeks. There were 25 advancing issues and 13 decliners, while volume fell to a four-week low.
For the past eight weeks the DFMGI has stayed within a relatively narrow range between a high of 4,253.28 and a low of 3,912.85. Rough support has been maintained around the 55-week exponential moving average (ema), now at 4,033.51, with the index closing above it for all but one of the past 11 weeks, a relatively bullish sign. In addition, the 200-day ema is being recognised by the index. Last week’s low of 4,039.38 was right at support of the 200-day ema.
Given last week’s price action, the pattern developing in the DFMGI is looking more like a breakout of a bullish flag pattern, that needs further confirmation to show some potential for upside follow-through. A bullish flag pattern forms in a pullback or correction that follows a rally. Symmetry is indicated as a declining parallel channel is formed during the correction. The breakout of this flag pattern occurred three weeks ago, but the breakout was quickly hit by selling pressure, putting the bullish potential of the pattern in doubt."
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