Well, a few weeks have past so I thought I'd take another look to see what's happened:
As you can see, the Index price level has recently broken below the support level. Does this mean Saudi stock prices are heading lower? As I mentioned in the last post, I don't place too much emphasis on this type of analysis. However, I know there are many traders and market analysts out there that do and they'll being interpreting this situation as distinctly bearish.
It's interesting to note that in the most recent Weekly GCC Trend Analysis report the outlook for the Saudi Tadawul Index was very bearish with the short, medium and long-term trends all pointing down. Perhaps the confluence of this and the trend line break above do suggest tough times ahead for Saudi stocks. Something to keep in mind anyway.
Enjoy.
