- Naranj Research Desk
After a prolonged decline, the Saudi stock market is finally showing signs of life.
The Tadawul All Share Index (TASI) has now recorded gains for two consecutive weeks, rising around 1.75% last week and moving back above the psychologically important 10,000 mark, closing at 10,095.
That's certainly encouraging.
But before getting too optimistic, there is one important question:
Is this the beginning of a sustained recovery, or just another temporary bounce within a broader downtrend?
Let's take a closer look at what the charts are telling us.
The bigger-picture shows TASI approaching an important long-term support area.
However, the daily chart tells us that the index is still facing a major challenge.
A falling resistance trendline continues to stand in the way of a stronger recovery.
In simple terms, buyers are slowly returning, but sellers have not given up yet.
The market's reaction around this resistance could determine its next move.
If TASI breaks above 10,150–10,200, supported by stronger trading activity, the recovery could extend towards 10,300–10,400.
A sustained move above this zone would further strengthen the bullish outlook.
If TASI fails to overcome resistance and slips below 9,800, selling pressure could return.
In that case, the index may decline towards 9,500–9,400, putting the recent recovery at risk.
Two factors deserve attention this week:
Two consecutive weeks of gains are encouraging, but they are not yet enough to confirm a lasting trend reversal.
Rather than chasing every upward move, positional traders should focus on stocks showing relative strength, improving price action and clear breakout signals.
Stay selective. Keep exposure under control. Let the market confirm its direction before becoming aggressive.
Because in a market trying to recover, protecting capital is just as important as finding opportunities.
