On a technical perspective, AB Capital Securities said the index was tightly in between its six-month upward trend channel support and one-month downward trend channel resistance and sitting on top of its 35-day short-term moving average
as the MACD (moving average convergence-divergence) indicator nears the zero-line.
For 2014, the index faced a support at around 7,500 point which prevented further drop and caused a turn around to higher level once again, leaving the medium-term moving average untouched, and locating the index little below its short-term moving average
and higher than its previous support at 7,616 point.
In our previous analysis on Abu Dhabi Securities Market (ADX) General Index two months ago, we said that a strong reversal lifted up the index in Mid-September to the same level of its short-term moving average
near 3,694 point, after being knocked down due to the heavy selloff on regional instability at the end of August and beginning of September, taking it below its short-term moving average
and slightly below the (76.
There is 'technical momentum' behind the rally in the short term with the sighting of a positive 'golden cross' - this is when the short-term moving average
price rises above the long-term moving average price in heavy trading volume - a sign of a bull market to come.
I have obtained much better correlation using a medium-term moving average for RDYRs and short-term moving average
The daily closing price index is used as the short-term moving average
4 percent level and above its short-term moving average
on September 10th.
Currently, the near support seems to be holding, while the short-term moving average
, which lies at 7,380 point now, gives another support to the index and preventing it from falling below.