What comes next in UAE markets will be telling | GulfNews.com

What comes next in UAE markets will be telling | GulfNews.com:

"Last week the Dubai Financial Market General Index (DFMGI) dropped by 39.52 or 1.13 per cent to close at 3,469.82. There were eight advancing issues and 31 declining, while volume exceeded the prior week’s level. The DFMGI remains in a precarious position as this is the second week in a row that it has closed below the long-term uptrend line on a weekly basis, and it has again ended the week below the 200-day exponential moving average (ema). Each of those trend indicators tells us something about the strength or weakness of the long-term uptrend. The DFMGI has now closed below the trend line in four out of the past five weeks and below the 200-day ema three out of the past five weeks. It is a sign of weakness that the index is closing below both indicators. At the same time the price area of the trend line is still supportive. A move out of the six-week range should tell us the next direction. Support is around the recent swing low of 3,435.14. That price area was tested last week and held as last week’s low was 3,445.86. If support continues to hold around those lows we may have the beginning of a double bottom reversal pattern forming."



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