On June 24, we posted a chart showing the Dubai Stock Market crashing. We also noted that it was approaching its first major support level around 3800-3900. It reached that support level a few days ago and it held, spectacularly.

After a quick intraday break on July 1, the DFM General Index reversed in textbook fashion to close above the key 3800 level (representing the 38.2% Fibonacci Retracement of the 2012-14 rally, 200-day SMA and the March low.) It has bounced 21% off that level in the past two days all the way to the 38.2% Fibonacci Retracement of its crash around 4400, where it has paused. A break above that level ushers in the next target at the 61.8% retracement (50-day SMA also comes in there) around 4770.

For those curious, iShares launched a UAE ETF ($UAE) on May 1, just before the market crashed.