Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Saudi Stock Market (Tadawul) at pivotal juncture

Stock-Markets / Saudi Arabia Jan 28, 2019 - 03:45 PM GMT

By: MarketsToday

Stock-Markets

As of yesterday’s (Sunday) 8,528.30 trend high, the Tadawul All Share Index (TASI) has rocketed over 12% in 25 trading days, when counting from the swing low of 7,589.23 on December 23. A long-term bullish trend continuation signal was triggered on the move as the day’s close was at 8,509.43, just above the most recent peak of 8,502.92 from July 2018. Further, yesterday’s close was the highest daily closing price since August 2015.


TASI Daily Chart

During the rally, the index broke out of a head and shoulders bottom trend reversal pattern with a complex right shoulder. You can see from the chart below that there was first a breakout of a head & shoulders bottom as price went through the lower neckline in early-December. Then, the formation continued to evolve, creating a second right shoulder. This led to a breakout of the second neckline three weeks ago. Given that yesterday’s high was just barely above the July peak, it remains to be seen if some resistance may still be seen before the TASI continues higher.

This is all very bullish behavior. Nevertheless, the TASI may have gotten ahead of itself and needs to take at least a short rest before moving higher. Given the rapid ascent over the past five weeks and the fact that the index is hitting potentially significant resistance, it seems like there is a good chance for some sideways movement or a pullback before the TASI is ready to sustain upward momentum. Also, the 14-day Relative Strength Index (RSI) momentum oscillator is well overbought at this point.


TASI Weekly Chart

Either way, it would be healthy for the advance if the index took a bit of a rest before progressing. This would also give investors a chance to prepare for the next run, as a continuation of the long-term uptrend that began off the October 2016 low. Regardless, so far there is no sign that the TASI will stall or pullback in a more significant fashion than last week’s relatively sideways movement. Investors should be prepared, nevertheless.

Investors in US markets can get exposure to Saudi equities through at least two ETFs. The iShares MSCI Saudi Arabia ETF (KSA) has almost 100% exposure to the Tadawul, while the Wisdom Tree Middle East Dividend Fund (GULF) has approximately 27% exposure, according to ETF Database.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in