By Mohammed Farouk

Kuwait-Mubasher: The GCC stock markets – as expected - moved sideways last week, and most of them broke their support levels, capital market expert Ibrahim Al-Failakawi told Mubasher.

He added that the GCC markets gave an exit signal, except for Oman and  Dubai, noting that the other exchanges consolidated above their key support levels.

If the support levels are broken, the exit signal will be confirmed, Al-Failakawi said, advising traders who are not well acquainted with speculations to stay away from the markets which broke their support levels.

Muscat Securities Exchange (MSM) moves slightly higher every week, and Dubai Financial Market (DFM) gave a buy signal, with a turnover exceeding 100% compared with a week earlier.  

The expert also advised speculators to focus on the cyclical stocks which can be easily bought and sold.

Although the Kuwaiti bourse gave an exit signal, it consolidated above its support of 6,250 points, Al-Failakawi said, adding that if the market breaks this level, it will move downward to the 6,200-6,100 level.

He also said that Tadawul still holds position above its support of 9,500 points despite giving an exit signal.

If the benchmark index TASI crosses this level, it will move downward to the 9,400 and then to 9,250 points.

If the TASI rebounds above its resistance of 9,600 points, it will target the 9,680-9,800 level.

The expert said the Qatari exchange confirmed the exit signal, and is likely to target the next support of 11,660 points, adding that if the index breaks this level, it will head towards 11,500 points.    

The DFM gave a buy signal and stabilised above its resistance of 4,060 points, Al-Failakawi said, adding that the index may re-target the 4,200.

In case of breaking the 4,060 level, the gauge will decline again to target its support of 4,000 points.

“If the index breaks the 4,000 level, investors should stay away from the market until the benchmark rebounds again above it,” Al-Failakawi said.

Meanwhile, the Abu Dhabi exchange gave an exit signal, but it still holds position above its support of 4,550 points. If the index breaks this level, it will head downward to the 4,500 and then to the 4,300.  

Resounding above the resistance level of 4,570 points is considered a positive sign, as the index will target 4,600 and 4,670 points.

Translated by Abdul Maguid Aboshahla