TASI trade ideas
Short Saudi Index TASI
On the daily chart divergence in RSI for highs of Dec-2019 and Jan-2020 indicated weakness in the up move within the channel.
Index has broken out of channel in last few days with both daily and weekly RSI now below 50 indicating weakness.
Index expected to continue its move back towards 7700 in next 5-6 months where the HnS pattern would complete.
Support can be expected at 8000-8050 followed by 7800 and 7700.
On completion of HnS pattern next support can be expected at 7400, 7000 & 6800.
On the upside resistance can be expected at 8400-8450 followed by 8600, 8860 & 9090.
Saudi Arabia Stock Market(TASI) in downtrend for next few months
Looking at the weekly chart from Feb-2018 it looks like index is in the second half of right shoulder of Head and Shoulder Pattern.
The high of left shoulder around 8450-8460 range has again acted as a resistance during the formation of right shoulder high.
This is also 61.8% retracement of price drop from high of mid-July to low formed in mid-October.
