Short-term bottoms look to be put in for UAE markets | GulfNews.com

Short-term bottoms look to be put in for UAE markets | GulfNews.com:

"The Dubai Financial Market General Index (DFMGI) ended flat last week, rising only 8.02 or 0.25 per cent to close at 3,273.30, almost the high for the week. This was the first week of positive performance, although small, in six weeks. There were 13 advancing issues and 21 declining, while volume improved to an 11-week high.

Earlier in the week the DFMGI was down as much as 4.2 per cent for the week at the low of 3,127.96, and 26.5 per cent lower than the 2015 peak of 4,253.38. The index then managed to reverse the declines to close positive for the week, and on higher volume. This is a positive development and indicates that a low has probably been put in for now, at least short-term.

Declines from here should see support step in anywhere down to last week’s low. If oil starts to strengthen at the same time, this will help a rally, however, there is no clear sign of that yet, and it is not necessary for the DFMGI continue higher. Of course, a drop below last week’s low puts this potentially bullish reversal scenario at risk of failure."



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