Tadawul Insights: The Hottest Sectors Shaping Saudi Arabia’s Trading Scene

We are conducting sector analysis of the Saudi Stock Market TADAWUL to identify the strongest sectors. This analysis encompasses sectors such as Banks, Transportation, Energy, Retail, Healthcare, Media, Pharmaceuticals, Telecom, Information Technology, among others. By conducting a detailed technical analysis of each sector, we aim to determine the best sectors for short-term trading advice for Saudi Tadawul. This relative strength analysis will assist traders in identifying sectors with positive and strong momentum.

TADAWUL: TBNI - Saudi Bank index TECHNICAL ANALYSIS (DAILY)

TBNI-DAILY TECHNICAL ANALYSIS
Saudi Bank Index - Technical Analysis (Daily)
  • Looking at the chart, we can see from April’23 to July’23, price was consolidating inside a rectangle pattern. After breakout of this chart pattern, price gave a rally of almost 600 points, but couldn’t manage to sustain above 12,000 level and got rejected from that level.
  • A huge selling pressure was seen, which has got the price down straight to 9500 level.
  • Price had gone in a oversold zone and declined to go below further. From there price had given a very sharp move upside and reached 10,500 level very early. With new Higher Highs and Lows, price was indicating that the bulls are back in action.
  • After a short accumulation period, price again moved so fast and reached at 12,000 level, from where the price previously fell down. 
  • This time the price finally managed to breakout the resistance level. This was the breakout of the Rounding Bottom pattern too, which can be seen in the chart.
  • After a successful retracement of breakout level, price is moving upside further, which indicates the Index is very strong at the moment.

TADAWUL: Tmdi - SAUDI Media & entertainment index - TECHNICAL ANALYSIS (DAILY)

TMDI-DAILY TECHNICAL ANALYSIS
Media & Entertainment Index - Technical Analysis (Daily)
  •  The price was in a consolidation phase from April’23 to Sept’23. During this period price has taken support at 22,800 level for three times and got rejected from 25,400 level for four times consecutively.
  • Then the price broke down 22,800 level and came straight at 21,600 level. For a short period of time price traded above the level but unfortunately couldn’t hold the ground. Breaking down the support level price came down at 19,450 level.
  • In this level an interesting chart pattern (Triple Top Pattern) was formed, which indicated market reached at oversold zone and a reversal trend was due.With a bullish Marubozu candle price has broken the neckline of the Triple Top pattern and made a sharp rally of almost 3,500 points to reach at 25,400 level.
  • Again with a bullish Marubozu candle, price broke its previous strong resistance zone. It was also a breakout of Rounding Bottom pattern too.
  • After three consecutive breakout, price is currently trading at 32,000 level, which is also the All Time High for the index.

TADAWUL: Thei - SAUDI Healthcare equipment & SERVICE index TECHNICAL ANALYSIS (DAILY)

THEI-DAILY TECHNICAL ANALYSIS
Healthcare equipment & Service Index - Technical Analysis (Daily)
  • Previously the price was in a strong uptrend and was making Higher Highs and Lows. A bullish Pennant pattern has formed in the chart, which is a trend continuation pattern.
  • After the breakout of the Pennant pattern, price gave a sharp rally and reached at 12,775 level. 
  • From there we have witnessed a huge downfall, which has got the price straight to the 9,800 level. This was almost 23% fall in just two months.
  • An important chart pattern, which is Double Bottom pattern has formed at the 9,650 level. With a breakout of the pattern, price confirmed that the bears are exhausted and leaving from the market.
  • After that, price was making Higher Highs and Lows with the help of trendline support.
  • During this period price made a rally of almost 2,100 points to reach at 12,750 level.
  • This time price broke its previous resistance level with a strong bullish Marubozu candle. This was also a breakout of Rounding Bottom chart pattern which can be seen in the chart.
  • Currently the price is trading at 13,750 level with a positive market sentiment.

TADAWUL: Tfbi - SAUDI Food & Beverages index TECHNICAL ANALYSIS (DAILY)

TFBI-DAILY TECHNICAL ANALYSIS
Food & Beverages Index - Technical Analysis (Daily)
  • From March’23, price was is in a strong uptrend and making Higher Highs and Lows. After two consecutive breakout price moved so fast and reached 6,450 level.
  • With a long wicked shooting star candle bears made a clear statement that they were intended to take the charge.
  • Although the buyers tried to hold the position but got departed as the price fell down from the top. The price was making lower highs and lows and came straight at 5,100 level.
  • From this level price stopped making new lows and slowly moving upwards. An Inverted Head and Shoulder pattern can easily be observed at the chart. With the help of a strong bullish Marubozu candle price has made a breakout of the neckline of Inverted Head and Shoulder.
  • In few trading sessions, price again reached its previous resistance, which is 6,450 level. But again couldn’t manage to breakout the level and came down so quick.
  • But this time the price couldn’t go beyond its previous low and made a bounce back from 5,950 level.
  • Currently price is at the verge of breakout. If the price somehow manages to sustain above 6,500 level, then we will be witnessing new higher levels in upcoming days.

TADAWUL: Tdfi - SAUDI Financial Services index TECHNICAL ANALYSIS (DAILY)

TDFI-DAILY TECHNICAL ANALYSIS
Financial Services Index - Technical Analysis (Daily)
  • The price has made a sharp move after the breakout of the Box Pattern or Rectangle Pattern. But unfortunately price has got three consecutive rejection at 7,400 level.
  • After the last rejection price came down so fast at 6,600 level, which was almost 10% fall from the top.
  • At this level some buyers showed interest and promoted the price to 7,150 level. But again buyers got dominated by the sellers and a huge downfall occured.
  • With a formation of an Inverted Head and Shoulder price  reversed the trend to uptrend. 
  • The price has continuously been maintaining a trendline support and currently trading just below of the resistance level. We can expect a rocket move above 7,400 level.

CONCLUSION

In conclusion, Saudi Arabia’s trading scene is being significantly shaped by several key sectors, offering lucrative profit opportunities for traders and investors. By conducting a detailed price action analysis, we have identified the most profitable sectors in the Saudi stock market. With a detailed analytical and creative approach, we aim to provide best trading signals for Saudi Tadawul to navigate the dynamic trading landscape of Saudi Arabia. Whether you are a seasoned investor or simply curious about the market, this information is invaluable. Make informed investment decisions and maximize your potential for success in the thriving Saudi trading landscape. Stay ahead of the curve and seize the opportunities that await.

TRADINGVIEW Analysis UPDATE

رؤى تداول: أهم القطاعات التي تشكل مشهد التداول في المملكة العربي by NaranjCapital on TradingView.com

MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable to enter/exit in the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other trading recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

Advisor / ANALYST SUMMARY

The stock trading advice is prepared by the Naranj Capital team under the guidance of Arijit Banerjee, CMT, CFTe. Arijit is a veteran trader and an active investor having in-depth knowledge of financial market research, advanced technical analysis, market cycle, algorithmic trading, and portfolio management. He is a Chartered Market Technician (CMT) accredited by CMT Association USA, the global authority of Technical Analysis and also has been honored as a Certified Financial Technician (CFTe) by the International Federation of Technical Analysts, USA.

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

Enjoy this recommendation?
Share with your friends

Your return could be more

PROFITABLE!

access our premium recommendations

for Saudi Arabia Stock Market Tadawul

Leverage our knowledge to trade with confidence. Expert Advice for short to medium term trading with specific target and strict stoploss.

Pricing

Pricing (in SAR)

Email Newsletter

Get Free Saudi Stock Trading Advice

We respect your privacy.

You cannot copy content of this page