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Dubai: for more upside in the DFMGI

Posted: 09/09/2012 - 9:49 am

After its modest retracement in late August, the DFMGI seems to have found support around the 1500 level as evidenced by the last eight trading sessions. While volume remains low for us to get very excited, the odds are high that the index will continue to move along the upward trajectory it has been on since June of this year.

The index remains in an up trend and the latest boost global markets received from the European Central Bank is likely to have a positive impact on the DFMGI and the rest of the regional indices this week. In fact, we already saw that type of impact on Saudi yesterday.

Macro picture aside, the price action in the DFMGI hints at a potential move to the area surrounding 1650 even though we would be careful not to expect a fast run to that level.

We continue to recommend a long bias but we stick to the liquid names only at this stage.

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