UAE markets continue to be range bound | GulfNews.com

UAE markets continue to be range bound | GulfNews.com:



"The Dubai Financial Market General Index (DFMGI) ended essentially sideways last week, closing down 8.95 or 0.22 per cent at 4,063.88. There were 17 advancing issues and 18 declining, while volume dropped from the prior week. The activity for the week occurred within a narrow range, the narrowest since February, and the index ended near the low of the week, which was at 4,056.96.



Over the past eight weeks the DFMGI has defined a consolidation range, with resistance at 4,253.28 (April peak), and support at 3,912.85 (May swing low). Until there is a decisive move through one of those price levels, signalling the next direction, the index will be within consolidation. Investors should be prepared for either scenario to unfold as a technical argument can be made for a move in either direction.



To date the correction off the April swing high (to May low) has been 8 per cent, essentially completing a 38.2 per cent Fibonacci retracement of the prior uptrend (close enough), measured from the March low of 3,232.79. The 38.2 per cent retracement completes at 3,863.45. This is a minimal retracement of the prior uptrend that can be expected, reflecting underlying strength. At the same time, there is no confirmation that the pullback is complete until we see a daily close above the April peak of 4,253.28."



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