Saturday 5 January 2019

A positive start to the new year for #UAE markets

A positive start to the new year for UAE markets:

The Dubai Financial Market General Index (DFMGI) saw its strongest one-week performance in nine weeks last week, rising 56.53 or 2.29 per cent to close at 2,526.02. Strength was widespread as there were 30 advancing issues and only four declining, while weekly volume dipped to a seven-week low given the shortened trading week due to the year-end holiday.

It was a tough 2018 for the Dubai market, as it fell 24.9 per cent as of last year’s close at 2,529.75. The DFMGI hit a peak at 3,684.19 in October 2017 and subsequently went into a steady decline for the next 13 months, with a series of lower swing highs and lower swing lows. This continued into the end of the year and the index remains in a clear downtrend.

The DFMGI is still at risk in the bigger picture as the prior long-term support at 2,590.72 was broken to the downside in December. That drop triggered a bearish continuation of both the intermediate (starting from the February 2017 peak of 3,738.69) and long-term (begun from the May 2014 peak of 5,406.62) downtrends.

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