Saudi Stock Exchange (Tadawul)
Saudi All Share Index <.TASI> closed at 7,099.90 point. The psychological level at 7,000 point just about held, while some buying potential was seen near there and could continue on the coming period due to the exhaustion mode of the daily "RSI" indicator. Knowing that nearby resistance levels are located at 7,210 point, 7,300 point and 7,400 point but only above 7,640 point will confirm a re-test of last month's high at 7,944 point. On the counter side, losing 7,000 point will deepen the downside correction phase towards 6,935 point (61.8% level of the Fibonacci Retracements from 6,315 point - 7,944 point) and 6,800 point. The weekly "RSI" indicator remains in favor of the bears at present.
Strategy: Medium-term (11 weeks) investors can re-enter the market above 7,300 point, while long-term (50 weeks) investors who would like to stay should be aware if the index closes below 6,800 point.
Riyad Bank <1010.SE>
Riyad Bank's stock price closed at SAR24.00. Although the current picture is leaning more towards the bears, but the stock is still finding bids near the critical support line at SAR23.00, a case if it remains, we would see the stock U-turn in an attempt to fulfill SAR25.40 and SAR27.20. However, for an aggressive bull trend to take place, a cross over the strong resistance layer at SAR31.20 is still required. On the bearish side, a dip below SAR23.00 would allow further slippage towards SAR22.15 and SAR20.30. The weekly "RSI" indicator is currently bearish, while the daily one is neutral but resides in the oversold territory, so some caution is warranted.
Strategy: Medium-term (11 weeks) and long-term (50 weeks) investors can buy above SAR24.60.
-Ends-
Fore more information, contact:
Research
Faisal Hasan, CFA
(965) 2295-1270
fhasan@global.com.kw
Brokerage
Fouad Fahmi Darwish
(965) 2295-1700
fdarwish@global.com.kw
Wealth Management - Kuwait
Rasha Al-Qenaei
(965) 2295-1380
alqenaei@global.com.kw
Wealth Management - International
Fahad Al-Ibrahim
(965) 2295-1400
fahad@global.com.kw
© Press Release 2012
