UAE markets going their separate ways | ZAWYA MENA Edition

UAE markets going their separate ways | ZAWYA MENA Edition:

"The Dubai Financial Market General Index (DFMGI) dropped by 38.06 or 1.12 per cent last week to close at 3,355.40. There were 22 advancing issues and 15 declining, while volume grew to a seven-week high. Last week’s drop put the index at a new closing weekly low for the seven-week downtrend and at a six-month low. A bearish trend continuation signal was therefore triggered. The short-term pattern that has now developed is of a descending trend channel, with the week ending at the trend line at the bottom of the channel, which is also the low for the week. The channel is best viewed on the daily chart. If the channel continues to evolve then we might see some support off of last week’s low. However, there are no signs yet that this may occur. Just below last week’s low is an uptrend line, which is where the DFMGI may next find support if last week’s low is broken to the downside. The line is now around 3,332.80. There is some significance to the line in that it represents support of a large symmetrical triangle consolidation pattern that has been developing over the past 10 months. Further down from there is a potential support zone from around 3,287 to 3,264. If the 3,264 is broken to the downside then a bearish breakout of the symmetrical triangle is confirmed. "



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