On the last trading day, the Index went up 14.43
points to close the day at 6892.62. As written in our earlier
commentaries, we maintain our cautious stance on the market at current levels
and wait for a clear break above 6950 resistance before buying aggressively.
Technically speaking, clearance of 6950 level is essential
for following reasons.
1) A
close above this level will end the two month long sideways trend and we will see
this short term uptrend extending further towards 7150 levels before profit
taking sets in.
2) Post
the breakout, the role reversal happens as the old resistance (6950) becomes
new support level.
3) On the longer term charts; hopefully, this sideways trend will serve as the major
base for a new bull rally which may propel TASI higher than its recent highs at
8000.
4) Our
long term bull view is also getting support from the historical trending
picture of TASI. As you can see on the chart, TASI has formed a major base
around 6000 level during August-October 2011 period. Subsequently, the Index
breached this range on the upside to form a peak at 7944 level.
Let’s hope the Tadawul All Share Index clears this
hump for good.
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