DFMGI Technical Overview

DFMGI Technical Overview

3690 still holding.

Although the long term outlook remains neutral, the index has fueled an attempt to break higher and is testing the important weekly resistance of 3690. Further Bullish pressure above that level would shift the long term bias to Bullish and indicate to a further rally targeting the 3780 and 3930. Such breakout would act as a trigger for medium term longs also as it would confirm the resumption of the June- August uptrend. However, the 3690 level held several times recently, and is likely to continue acting as a strong resistance to upside moves. Failure to clear that level will reinstate Bearish momentum and drive the index back to the mid-point of the medium term range at 3600. A further fall will shift focus to the lower-end of the range at 3540.