Mixed near-term outlook for UAE markets | GulfNews.com

Mixed near-term outlook for UAE markets | GulfNews.com:

"Last week the Dubai Financial Market General Index (DFMGI) advanced by 29.39 or 0.88 per cent to close at 3,384.63, the fourth consecutive week of positive performance. For the first week in four there were more stocks that fell than rose, with 20 declining against 18 advancing. Volume fell well below the prior two weeks, reaching a three-week low.

For the past couple of weeks the index has made several attemps to break above the 200-day exponential moving average (ema), now at 3,405.44. It has represented trend resistance along with the two-week high at 3,420.71. If the high is exceeded the DFMGI next heads towards a resistance zone from 3,498 to 3,542. Thereafter, there is a resistance zone up to the October highs, around 3,740 to 3,763.

So far, given last week’s performance, we can anticipate that the two-week high will be exceeded. The DFMGI fell into Wednesday before finding support at the 21-day ema and rallying, ending with a bullish one-day candle, followed by a four-day closing high on Thursday. This type of price action identifies the 21-day ema as an important trend support indicator for the near-term uptrend, and therefore it should continue to be watched. In addition, by Wednesday the DFMGI was down 3 per cent for the week before recovering into Thursday to close positive. Support was found at 3,253.1, just above the prior week’s low of 3,251.05, thereby maintaining a consistent eight week’s of higher lows."



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