TASI Finally Breaks Its 8-Week Losing Streak. Is the Worst Over?

Eight weeks of consecutive losses. Mounting pressure. And growing uncertainty.

Finally, the Saudi stock market has given investors some relief.

The Tadawul All Share Index (TASI) gained approximately 2.4% last week, ending its eight-week losing streak.

But before celebrating the recovery, there is one important question:

Has the market finally found its bottom, or is this just a temporary bounce?

Let's look at what the charts are telling us.

📉 The Bigger Picture Is Still Weak

Despite last week's recovery, TASI has yet to show a clear change in its broader trend.

The index continues to form lower highs and lower lows, a sign that selling pressure remains in control.

In simple terms, the market has bounced, but it hasn't yet proved that it is ready for a sustained recovery.

🎯 Two Levels That Could Decide the Next Move

1️⃣ Resistance: 10,000–10,200

This is the first major hurdle for TASI.

If the index can move above this zone and hold, it could strengthen the recovery and improve the short-term outlook.

Until then, investors should remain cautious about assuming the worst is over.

2️⃣ Support: 9,500–9,700

If the recovery loses momentum, this is the near-term demand zone to watch.

Buyers may attempt to defend this area, but a sustained recovery is not guaranteed.

🌍 What Else Could Move the Market?

Two major factors remain on investors' radar:

🔹 Geopolitical tensions: Continued tensions involving Saudi Arabia and Yemen's Houthis could weigh on investor confidence and increase market volatility.

🔹 Crude oil prices: Elevated oil prices may support energy companies, but concerns about regional supply disruptions could keep broader market sentiment uncertain.

📊 What Should Positional Traders Do?

This is not the time to become overly aggressive.

✔️ Avoid aggressive fresh buying until TASI shows a stronger recovery.

✔️ Focus on stocks that are holding up better than the broader market.

✔️ Keep exposure under control and define stop-loss levels before entering a trade.

The Bottom Line

The end of an eight-week losing streak is encouraging. But one positive week does not erase the damage caused by two months of selling pressure.

TASI needs to reclaim the 10,000–10,200 zone to strengthen the recovery outlook.

Until then, patience and careful stock selection may matter more than chasing a short-term bounce.