UAE markets stabilise | GulfNews.com:
The Dubai Financial Market General Index (DFMGI) rose by 59.42 or 2.11 per cent last week to end at 2,880.42. This was the first positive week in four. There were 28 advancing issues and 11 declining, while volume dipped slightly below the previous week.
For the past eight weeks or so downward momentum has been slowing as measured by the Relative Strength Index (RSI) momentum oscillator with the indicator now showing a bullish divergence. The indicator bottomed at 19.2 nine weeks ago and has been rising since, ending last week back above the 30 oversold level to 33.1. At the low the RSI was the most oversold since the DFMGI bottom in January 2016. Even though price can stay oversold and under pressure for some time when the characteristics of the RSI are combined with recent price behaviour the near-term bullish argument becomes stronger.
Last week’s low of 2,820.67 held above support of the previous week which is at 2,805.44. This creates an inside week where the high to low range was contained within the borders of the prior week’s range. The pattern suggests that selling pressure has diminished as support held above the prior week’s low.
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