Dubai disappoints while Abu Dhabi holds strong | GulfNews.com

Dubai disappoints while Abu Dhabi holds strong | GulfNews.com:

"Last week the Dubai Fnancial Market General Index (DFMGI) was not spared from global market volatility as the index dropped by 86.64 or 2.54 per cent to close at 3,325.62. This was its worse performance in 13 weeks and the third consecutive week down. Most issues lost money with 37 declining and only four advancing. Volume however fell to its lowest level since late-September rather than increase as it may when price breaks support and there is potentially sustainable underlying selling pressure. The index has now fallen as much as 10.9 per cent off the October peak as of last week’s low at 3,283.66. That low touched the support zone around the June 2017 swing low. That swing low was part of a support zone from around 3,287.50 to 3,264.36. Nonetheless, that price range is part of a larger support zone that ended at 3,195.94 (2016 low). That’s the lowest price for the DFMGI since late-February 2016 and the lower end of a two-year rangebound period for the index. The range takes the form of a large symmetrical triangle consolidation pattern. In that case last week’s price action takes on greater importance as the rising trend line at the bottom of the pattern was broken to the downside and the DFMGI has closed below it on a weekly closing basis. This is a bearish signal by itself. At the same time a bearish trend continuation signal was generated as the most recent swing low from seven weeks ago at 3,325.98 was broken. These two bearish signals increase the chance that the index will at least test the 2016 lows, and could bust below them. There’s no indication though that a break below the 2016 lows would lead to an eventual drop below the January 2016 swing low. So, for now we can anticipate that if the area of the 2016 low is approached there is a good chance that support will again be seen somewhere around that price area. "



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