Special technical report saudi stock market major index (“pure” price analysis says a lot!!!)...

JAZIRA SECURITIES BROKERAGE

SPECIAL TECH REPORT Wednesday, December 14, 2011

1

“PURE” PRICE ANALYSIS SAYS A LOT!!!

A major lateral action still taking place and, without doubt, gaining mo-

mentum. After early 2011 panic move, a selling climax pattern then a

violent thrust took the index right to the mid-Jan 2011 peak. A decline

off that level failed to continue all the way down to the low of the men-

tioned panic move, forming a higher lows pattern, and a sustainable ral-

ly has materialized.

This rally is just perfect! A moderate rising channel is taking place,

volume is rising noticeably, over the 200-day EMA of volume in most

time, and the prices having fun penetrating most static and moving re-

sistance levels.

Why the index is tumbling with heavy volume? Well, that makes sense

after reaching a confluence of resistance zone from the 200-day EMA,

lower degree dotted rising trend line, the 50% fib retracement level and

the rising resistance thick blue line of the intermediate rising channel.

So what’s happening right now? A mentioned concentration of supply

zone is forcing the index to a confluence of support from 1) the 50-day

EMA (@6,175), 2) a declining important support line (red one), 3) a

horizontal dotted support line (@6,150).

What about possible scenarios? A lateral action between the 50-day

EMA (6,175) and the 200-day EMA (6,300) may take place. A decisive

down-breakout below 6,150 will force the index to the lower rising sup-

port thick blue line in the intermediate rising channel. Medium-term

traders are just fine as long as the index keep this channel intact.

SAUDI STOCK MARKET MAJOR INDEX RIC: .TASI

BOTTOM LINE: (Last Price: 6,181 pt.) Hold, Trade mentioned

range, Buy Dips to the lower side of the channel & Stop Loss

below 6,030.

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SPECIAL TECH REPORT Wednesday, December 14, 2011

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Special technical report saudi stock market major index (“pure” price analysis says a lot!!!)...

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