The Saudi insurance sector is showing signs of resurgence, currently trading about 10% below its all-time high and forming an Inverted Head & Shoulder pattern, indicating a potential reversal. With a recent breakout, several stocks are worth monitoring for significant returns. Jazira Takaful, Malath Insurance, Arabian Shield, SAICO, AGIG, Alsagar Insurance, and Saudi Reinsurance are positioned for growth as the sector revitalizes.
Tadawul Insurance Sector (TISI) - Technical analysis
- The Saudi Insurance index is presently trading at a discount of nearly 10% from its all-time high.
- Notably, the index has formed an Inverted Head & Shoulder pattern, indicating a potential reversal.
- With a recent breakout, the index is gearing up for an upward movement.
With the index showing indications of a turnaround, a number of stocks deserve careful observation due to their potential for significant returns.
1. TADAWUL: 8012 - Jazira Takaful
- After experiencing a decline, the stock has recently rebounded from the trendline support and successfully broken out of the Falling Wedge pattern.
- With a surge in trading volume, there are strong indications that the stock may continue to rise.
2. TADAWUL: 8020 - Malath Insurance
- Following a bounce from the trendline support, the price has stabilized and has now broken through the Symmetrical Triangle pattern, positioning itself for upward movement.
3. TADAWUL: 8070 - Arabian Shield
- The stock has rebounded from the trendline support and has also surpassed the trendline resistance, setting the stage for an upward trajectory.
4. TADAWUL: 8100 - SAICO
- After a significant downtrend, the stock has bounced off the trendline support and has recently broken through its trendline resistance, supported by decent trading volume, indicating an upward movement.
5. TADAWUL: 8150 - ACIG
- AGIG has mirrored this trend, rebounding from trendline support following a sharp downturn.
- The stock has successfully broken through trendline resistance, backed by respectable volume support, and is now poised for an upward trajectory.
6. TADAWUL: 8180 - Alsagar Insurance
- Similarly, Alsagar Insurance has bounced back from trendline support after experiencing a significant downtrend.
- The recent breakout above trendline resistance, supported by notable volume, suggests a potential reversal, with the stock likely to move upward.
7. TADAWUL: 8200 - Saudi Reinsurance
- Saudi Reinsurance stands out as the only stock in the sector exhibiting a robust uptrend, consistently achieving higher highs and lows.
- With a recent breakout, the price is anticipated to maintain its upward momentum.
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