Technical analysis view on Saudi Arabia’s Stock Market (Tadawul) or (TASI) showed that the market had hit new highs not seen since May 2008, as it is now traded around the 9,800 points as on Thursday, June 12, 2014, said a report here Saturday.
A report by Kuwait Finance House’s (KFH) Research Limited Technical said that TASI’s indicators are still at the overbought levels with no sign of retrieval yet, and a break above the current high at 9,868 points would easily take the index higher to the psychological level at 10,000 points in the near-term period, and maybe further to the 10,200 points resistance level.
However, a minor correction cannot be eliminated in the coming short-term period but would be limited to 9,680 points, which would enable investors to build new positions at lower prices.
Knowing that the following support will occur at 9,550 points and any retreat below that line would give a cashing out signal for short-term investors, said the report.
Meanwhile, medium and long term investors can continue to hold their stocks as their trends remain bullish, and consider cashing out at levels lower than 8,720 points and 7,780 points, respectively, if the index retreated below those lines.
KFH Research Limited is an award winning, independent Islamic research entity and is owned by Kuwait Finance House. Its research advisory includes economics, financial and feasibility analysis on new markets and potential investment ventures in various sectors worldwide.
Source : KUNA Kuwait News agency