24 May 2012
Saudi Stock Exchange (Tadawul)
Saudi All Share Index <.TASI> closed at 7,061.43 point. Although the market moved up from the psychological level at 7,000 point, but the recovery process is not yet convincing. Knowing that regaining the resistance area at 7,200 point - 7,250 point would alleviate the selling pressure, which in turn will open the space for additional advance towards 6,300 point and 6,400 point, but it is still believed that a cross over 7,640 point would be the turning point to 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 is bullish at present, while the daily one is negative, so some caution is warranted.
Strategy: Medium-term (11 weeks) investors can re-enter the market above 7,250 point, while long-term (50 weeks) investors who would like to stay should be aware if the index closes below 6,800 point.
Saudi Basic Industries Corporation <2010.SE>
SABIC's stock price closed at SAR95.00. The technical signals for the stock are conflicting as chances for a rise as well as for a fall are even. The price is currently moving below both medium-term (11 weeks) and long-term (50 weeks) moving averages, which could still favor a bearish move; however, preserving a close above the 2-years ascending trend line is a positive sign. Therefore, the stock's participants should await a fresh signal to clear the tone. Knowing that a cross over the resistance zone between SAR98.50 - SAR100.00 would promote SAR105.00 and maybe higher towards SAR110.25, while losing the horizontal line at around SAR93.00 would trigger additional weaknesses towards SAR89.50 and SAR87.50. The weekly "RSI" indicator is in favor of the bulls at present, while the daily one is neutral.
Saudi Stock Exchange (Tadawul)
Saudi All Share Index <.TASI> closed at 7,061.43 point. Although the market moved up from the psychological level at 7,000 point, but the recovery process is not yet convincing. Knowing that regaining the resistance area at 7,200 point - 7,250 point would alleviate the selling pressure, which in turn will open the space for additional advance towards 6,300 point and 6,400 point, but it is still believed that a cross over 7,640 point would be the turning point to 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 is bullish at present, while the daily one is negative, so some caution is warranted.
Strategy: Medium-term (11 weeks) investors can re-enter the market above 7,250 point, while long-term (50 weeks) investors who would like to stay should be aware if the index closes below 6,800 point.
Saudi Basic Industries Corporation <2010.SE>
SABIC's stock price closed at SAR95.00. The technical signals for the stock are conflicting as chances for a rise as well as for a fall are even. The price is currently moving below both medium-term (11 weeks) and long-term (50 weeks) moving averages, which could still favor a bearish move; however, preserving a close above the 2-years ascending trend line is a positive sign. Therefore, the stock's participants should await a fresh signal to clear the tone. Knowing that a cross over the resistance zone between SAR98.50 - SAR100.00 would promote SAR105.00 and maybe higher towards SAR110.25, while losing the horizontal line at around SAR93.00 would trigger additional weaknesses towards SAR89.50 and SAR87.50. The weekly "RSI" indicator is in favor of the bulls at present, while the daily one is neutral.
Strategy: Long-term and medium-term investors can only purchase the stock if the price sustains a close above SAR98.50 and SAR99.20, respectively. 
-Ends-
Research
Faisal Hasan, CFA
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fhasan@global.com.kw
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Fouad Fahmi Darwish
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fdarwish@global.com.kw Wealth Management - Kuwait
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(965) 2295-1380
alqenaei@global.com.kw Wealth Management - International
Fahad Al-Ibrahim
(965) 2295-1400
fahad@global.com.kw Global Wealth Manager
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Tel: (965) 1-804-242
© Press Release 2012
