Tadawul All Share Index Trend Score

The Index continued its uptrend for the sixth day in a row and added 59 points to close the day at 6951.66. The Index has cleared its major resistance level at 6900 with a good margin and we believe the TASI is likely to trend further high around 7150 level before a pulling back a bit.

After posting six up days in a row, today, the Index may spend the day in a directionless mode as the prospects of profit booking on the upside are very high. Near term support levels are at 6900 and 6700. We recommend investors to go long on weakness.

 

Arab National Bank (ARNB) is looking good. Yesterday, the stock gave medium term buy signal as the 2 weeks moving average crossed the 12 weeks moving average. However, the long term buy signal is pending as the 2 weeks moving average is trading below 52 weeks moving average. We believe, the stock will generate a long term buy signal if it trades above SAR 29.00 for the next few days.

We expect the ARNB to move higher and test its major highs in the region of SAR 33.00-35.00 level in the next couple of weeks. However, before trending higher, we may see slight pullback due to its recent run up in prices from SAR 26.00 to SAR 29.00. Major support is at SAR 28.00 and we recommend buying ARNB on weakness. Please put a stop loss at SAR 27.25 level for protection.