Abu Dhabi index seen higher on technicals

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The positive technical outlook for the Abu Dhabi market, which has rallied sharply in recent sessions, may give another boost to the index.

The market rose 1.0 percent on Monday, closing at 2,924 points, its highest since March 2010. The index is in a clear uptrend channel dating back to the start of January, and high trading volumes since then are confirming the bullish trend.

"A medium- to low- probability entry signal to go long was given at 2,917 after the market broke the resistance level at 2,915," MENA Corp says in a note.

The market faces significant chart resistance at 2,944 points, the peak in March 2010.

Abu Dhabi's benchmark has risen 11.1 percent so far in 2012, helped by gains in banking shares as confidence in the sector returns, as well as property stocks.

Shares in Abu Dhabi Commercial Bank may see increased interest after the lender said it mandated joint lead arrangers for a possible benchmark-sized dollar-denominated bond.

Elsewhere, the global backdrop may lend support to sentiment. Tokyo stocks jumped back near a 33-month high on Tuesday after markets took comments from a US official as giving Japan the green light to pursue policies that weaken the yen as long as they help beat deflation.

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