Sellers dominate UAE markets as volume evaporates | GulfNews.com

Sellers dominate UAE markets as volume evaporates | GulfNews.com:
"Last week the Dubai Financial Market General Index (DFMGI) was down by 37.13 or 1.04 per cent to close at 3,517.33. There were 16 advancing issues and 20 declining, while volume fell to a seven-week low. To date the index is up 14.8 per cent for 2016.
The DFMGI continued to pull back off the new 2016 high of 3,658.61 hit two weeks ago as it closed below the prior week’s low on a weekly basis. A bullish breakout was triggered on the approach to that high as the index was moving out of a large rectangle consolidation pattern. So far though the breakout shows signs of failure that should lead to a deeper retracement than what has been seen so far.
A decline below last week’s low of 3,490.66 signals a continuation of the decline. The first support target has been around the 38.2 per cent Fibonacci retracement at 3,479.85, not too far below last week’s low. Also, the 21-day exponential moving average (ema) is at 3,475.40 and it too represents a potential support level. This provides a clear tight range from 3,479.85 to 3,475.40 as the next target. Therefore, a decisive drop and daily close below that range increases the likelihood that the DFMGI could fall further before seeing much of a bounce or recovery. Otherwise, support would be seen in this price range leading to at least a stall if not a bounce."

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