TASI Eyes a Bounce, But Caution Still Rules the Market

The Tadawul All Share Index (TASI) opened the previous week with a sharp gap-down of over 400 points, registering a steep decline of nearly 4%. While the market staged an intraday rebound, overall sentiment remained fragile, and the index managed to close just above the key support level near 10,600.

From a technical standpoint, TASI has now entered the oversold territory, raising the probability of a short-term reversal. However, with the Israel–Iran conflict escalating further, we do not anticipate any clear upside trend in the coming week.

Volatility is expected to remain elevated, and sharp intraday swings are likely to persist. Traders and investors are advised to manage their positions cautiously and wait for stronger confirmation before taking directional bets.