The Dubai Financial Market General Index (DFMGI) is currently trading at 3,266.31 as at March 28, 2016. The index shed 0.39% for a loss of 12.85 points on the day. Looking back, the DFMGI has a 52-week low of 2,590.72 and a level of 4,253.28 on the high end. The performance over time has been positive (given the state of the global economy of late) with a 1-year return at -0.82% and the year-to-date return improving to +3.66%. There are some interesting developments taking place with the moving averages on this index. Take a look at the current 20 – Day Moving Average which is at 3,299.1680; it shows a sharp uptick in the performance of the DFM index in March. This short-term moving average tracks the general performance of the index. If we extrapolate further back towards January, the 50-Day Moving Average is currently well below the current level of 3,266, at 3,084.5424. The 100-Day Moving Average paints a more positive picture for the Dubai Financial Market at a level of 3,219.1439 which is marginally lower than the 20-Day MA, but nonetheless on the way up. In fact, all three moving averages for the DFM index have either reversed course or are already on the ascendancy. This is evident from the above technical chart.
Sensible Advice for Trading the DFM Index
For the 28 March, the 36-member index had 10 members up and 8 members down. In terms of general technical analysis for this index, the daily advice is to sell based on moving averages and technical indicators. The index has several pivot points including the following:
Classic Pivot Points – S1 – 3,261.59, S2 – 3,244.02, and S3 – 3,215.86 with R1 – 3,307.32, R2 – 3,335.48 and R3 -3,353.05
Fibonacci Pivot Points – S1 -3,272.28, S2 – 3,261.49, and S3 – 3,244.02 with R1 – 3,307.22, R2 – 3,318.01 and R3 – 3,335.38
