Continued signs of strength in UAE markets | GulfNews.com

Continued signs of strength in UAE markets | GulfNews.com:

"Last week the Dubai Financial Market General Index (DFMGI) was up 64.25 or 2.09 per cent to close at 3,137.32. Even with the shortened four-day trading week volume managed to almost match the prior week’s level. Most issues participated in the rally, with 27 advancing and only eight declining.

We had bullish upside follow-through last week from the bounce that started two weeks ago off a strong long-term support zone. The 2,851.24 low from two weeks ago identifies the key medium-term support level now. Multiple indicators verify the significance of that low, with the odds that it will hold for at least the near-term strengthened given last week’s price action. This means that a rally of some note has a good chance of occurring, and that, if and when that low is broken a new long-term bearish signal will be indicated.

After dipping earlier in the week the DFMGI managed to close at a two-week high and in the top quarter of the week’s range. Near-term resistance is the high of the week at 3,173.1. A rally above that price level will give the next bullish signal, with the next key area to watch for resistance starting around the three-week high of 3,227, and going up to the five-week high around 3,302."



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