Dubai stocks re-embarked on their bull-run yesterday, smashing through a tough resistance level to a near 15-month high.
After a spot of profit-taking on Monday, the Dubai Financial Market General Index bounced back, climbing 2.66 per cent to 1,698.22, its highest close since December 8, 2010. Abu Dhabi's bourse extended gains to its highest close in almost six months.
"The DFM managed to break a key resistance level of 1,691 and the next target is 1,717," said Amjad Bakir, head of Menacorp Securities. "However, there is some divergence between prices and market indicators in that prices are going up but indicators — such as the Relative Strength Index — are moving sideways.
"This suggests that a correction is going to happen sooner or later and probably within the next few days. The market is going up but momentum remains at the same level," he added.