TASI Falls 2.1%: Is 10,500 the Next Big Test?

The Saudi market just gave investors a warning.

After weeks of moving in a narrow range, the Tadawul All Share Index (TASI) finally made a decisive move, falling 2.1% last week to close at 10,777.

And interestingly, this is exactly the kind of move we were watching for in our previous analysis.

We highlighted that the narrow range following the earlier decline could be a sign that TASI was building up for its next directional move.

Last week, that move came.

And for now, it was to the downside.

So, where does TASI go from here?

The next important area is already on the chart.

10,400–10,500.

This zone has acted as an important support area several times in the past.

If selling pressure continues, this is where the market could find buyers and attempt to stabilize.

But there is another level traders need to watch closely:

11,000.

After last week's decline, 11,000 has now become an immediate resistance level.

Simply put:

Below 11,000 → pressure remains.

Above 11,000 → the market could start showing signs of recovery.

Why did the market fall?

The decline came amid a difficult backdrop.

Several GCC central banks raised interest rates following the US Federal Reserve's rate increase, including Saudi Arabia, where the repo and reverse repo rates were raised by 25 basis points.

At the same time, renewed regional military tensions added another layer of uncertainty for investors, particularly given the potential impact on Saudi energy infrastructure.

What should traders watch now?

The chart is currently showing continued downward pressure.

So this may not be the time to rush into fresh long positions.

Instead, the key question is whether 10,400–10,500 can hold.

If buyers step in and a clear bullish pattern develops around this support, the picture could change.

Until then, capital protection matters more than chasing a falling market.

The coming week could be important.

Will 10,500 once again bring buyers into TASI, or will the index break below this key support?