Is the recent TASI breakout a negative sign for the Saudi market? FOR TADAWUL: TASI by NaranjCapital — TradingView

Last week provided an important signal for the Saudi market.

The Tadawul All-Share Index closed down about 1.4%, ending the week at 11,031 points.

At first glance, this appears to be a normal weekly decline.

But when looking at the broader picture via weekly and daily charts, the importance of this information becomes clear.

The overall trend is still weak

TASI has been moving within a descending channel for several weeks, meaning the market’s highs are gradually moving lower.

The last time the indicator attempted to move higher, sellers once again stepped in near the upper border of the channel.

This rejection is important.

Because this shows that the market still lacks strong buying power.

A bearish pattern has now emerged

On the daily chart, a bearish head and shoulders pattern has emerged, with the indicator now breaking below the neckline.

Short:

👉 Downside momentum may start to build.

This increases the likelihood of a short-term correction.

Key levels for investors to watch

Currently, two bearish areas are critical:

🔹 First support level: 10,500 – 10,400
🔹 Next support level: 10,100 – 10,000

These areas are where buyers may be trying to stabilize the market.

On the bright side, things won’t change unless the TASI index can regain 11,100 points and remain above that level.

If this is achieved, the index may attempt another upward move towards 11,500 points.

But at present, this scenario seems unlikely to happen.

What does this mean for next week?

Current conditions suggest that the Saudi market may remain neutral or bearish in the short term.

In this case, buying in large quantities is not recommended.

At this stage, patience is more important than prediction.

The wisest thing to do right now

Instead of chasing every market move, traders should focus on the following:

✔ Monitor indicator behavior when approaching support areas.
✔ Avoid taking aggressive or reckless long positions.
✔ Wait for confirmation signals before entering any new investment positions.

This is because, in such a market, protecting capital is as important as finding investment opportunities.