Big picture analysis - Tadawul All Share TASI Index(Saudi Arabia), Monthly Chart – resistance higher

list Aug 27, 2014 | Views 2712

The Big picture - Tadawul All Share TASI Index

The retracement of the most recent long-term downtrend (from January 2008 high) in the Tadawul All Share TASI Index has exceeded 90%, a testament to its strength. And, momentum has accelerated over the past two months as enthusiasm for Saudi stocks increases.

Given the degree of retracement, and the lack of any significant pull-back over the past 20 months or so, the odds of reaching, if not exceeding, the 11,738.7 January 2008 peak continues to improve.

A daily, and then weekly close, above that peak points to a continuation of the rally up to at least the 50% Fibonacci retracement level at 12,517.34. That’s derived from measuring the full long-term downtrend coming off the 20,966.6 peak hit February 2006.

A monthly resistance zone (over several months previously), from approximately 13,248 to 13,542, follows.

Big picture analysis - Tadawul All Share TASI Index (SaudiArabia)

Click here to open Large View


The views and opinions expressed here are solely those of the authors / contributors and do not necessarily reflect the views of Neither nor any person acting on its behalf may be responsible for information contained herein. The content posted here may have been edited to conform to policies, terms and conditions. Any investment / trading related article, analysis or commentary are by no means a guarantee of present or future performance and should not be relied upon solely when buying or selling a financial instrument. Every investment no matter how appealing, involves risk and the investor should conduct their own research, consider personal risk tolerance, preference and needs when making an investment or trading decision.