Sunday, Apr 27, 2014
Dubai: As the Dubai Financial Market index continues to rise, traders and investors are beginning to consider a fundamental question: how high can it go?
The index has gained a total of 52 per cent in value since the start of the year, and has seen gains on seven of the last eight trading days, largely due to a buoyant property sector.
“I am expecting a light correction in the next few days,” said independent investor Adel Al Hammadi. “Maybe it will be a chance for the other shares.”
Analyst Osama Al Ashri, of Britain’s Society for Technical Analysts, considers any correction a temporary matter. “I think it has new targets up to 5,550,” he said. “It has gone up this month from 4,400 to 5,200 without a correction so there’s no problem even if it goes below 5,000 on a correction again — this is a large distance.
Underlying indicators
“Any correction is no problem. It has new high targets — the first resistance is above 5,500.”
Al Ashri said the underlying indicators for the DFM were remarkably similar to those of the Abu Dhabi Securities Exchange index.
“I feel from the charts that there’s agreement on both indices. Maybe they are preparing for a merger — everything is the same.”
Al Ashri felt confident not only in the index, but in market operator Dubai Financial Market, which is traded on the exchange. “It’s going down at the moment as a correction, but it has strong support at Dh3.57. This share I see going on to a first resistance at Dh4.26 and a second resistance at Dh4.4. I see positive signals in the chart.”
By Andrew Staples Editor Universal Copy Desk
Gulf News 2014. All rights reserved.
