Tadawul All Share: Continues To Weaken Following Breakdown From Rising
Bruce Powers | Sep 17, 2018 01:08AM ET
Following a breakdown from a bearish rising wedge several weeks ago, the Tadawul All Share (Saudi Arabia stock market) seen three consecutive weeks of falling prices. The index is now fast approaching the first key support zone to watch for a potential short-term bounce. Typically, at some point following a breakdown a bearish pattern a counter-trend rally will occur back up towards the breakdown zone (approx. 7,226) to some degree, before a continuation lower kicks in.
The next potential support zone to watch is around the 38.2% Fibonacci retracement zone of 7,289.79. You can see that this support zone is reinforced by prior support and resistance as can be seen on the weekly chart below.
If the 38.2% price zone is exceeded to the downside the TASI next heads towards a price zone from around 6,916 (50% retracement) to 6,710 (prior monthly support). The lower price zone is a key level as it was a low during an eleven-month consolidation zone from 2017 and is part of the larger developing uptrend begun off the October 2016 lows. Nevertheless, if exceeded to the downside the TASI next heads towards the 61.8% Fibonacci retracement of 6,540.43.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.