TASI Finally Bounces. Recovery or Just a Temporary Pause?

The Saudi stock market remained under pressure last week.

The Tadawul All Share Index (TASI) declined 0.81%, ending the week at 10,720.

Interestingly, this move unfolded almost exactly as we discussed in last week's outlook, reinforcing that the market remains in a short-term downtrend.

Now, all eyes are on one important area.

The 10,500-10,400 zone has acted as a strong support multiple times in the past. Once again, TASI is moving closer to this level.

Why does it matter?

Because this support could decide the market's next major move.

If buyers defend this area, we may see a relief rally.

However, if the index breaks below 10,400, selling pressure could intensify and drag the market toward the 10,000 level.

At the moment, the daily chart still shows sellers in control, with no clear signs that the downtrend has ended.

What should investors do?

This isn't the time to guess.

It's the time to observe.

Until buyers show clear strength, patience may prove to be the best strategy.

Sometimes, protecting your capital is just as important as growing it.