Still holding lows, UAE market keeps investors on edge | ZAWYA MENA Edition

Still holding lows, UAE market keeps investors on edge | ZAWYA MENA Edition:

"Last week the Dubai Financial Market General Index (DFMGI) fell by 26.71 or 0.78 per cent to close at 3,393.46, a new weekly closing low for the current decline. Downward pressure was spread through the market with only eight issues that advanced and twenty-five declining. Volume for the week was essentially flat compared to the previous week. The overriding chart pattern for the DFMGI is a series of lower weekly highs. As of last week that pattern has persisted for six straight weeks. What we don’t see is a continuation of the pattern of lower weekly lows which would be more bearish, as last week’s low found support right around the 3,382.83 low from three weeks ago. Last week’s low was 3,381.67, and together with the three-week low creates a shelf of support for the index. So far there is no sign of buyers stepping in but the index has stopped going down so far. There are a couple primary scenarios that look plausible for the near future given the price action of the past month, as the DFMGI is still attempting to find a bottom. The two lows mentioned above could turn into the beginning of a double bottom trend reversal pattern. Although the pattern is not perfect given its shape, there are two bottom, with the caveat that the second bottom still needs a little more confirmation. Regardless, the pattern is not confirmed as a double bottom until there is an upside breakout. That wouldn’t occur until there is a decisive rally above 3,476.27."



'via Blog this'