Now this really contradicts my previous post, but technically speaking the Kuwait Stock Exchange (KSE) index is posed to sell-off in the short-term. Although we are still lagging most indexes around us, there is a strong probability that we might lose another 200 points, i.e 2.5%.
Below is a list of the year-to-date (YTD) performance of relevant indexes:
Studying at the graph below, we have broken both the 20 and 40 day moving averages and it looks like we are heading towards testing the 200 day moving average (7500 levels). When we broke those 2 averages last June, we went down to the 7400 levels before recovering. I think it is a good time to book some profits and buy back later at lower levels as a short-term trade.
*Click on the image for a detailed view
(No Ratings Yet)
Loading ...Tags: GCC, KSE, Kuwait, Kuwait Stock Exchange, Sell Kuwait Stocks, Technical Analysis, Zain
Good analysis
But I think we must give it one or two days for confirmation.
I’m not sure but I think yesterday’s close is near a trendline support, a weak one at that. The beauty of charts is that they are always open for interpretation
I must admit that it sure looks like we will see the 7500 levels again.
[Reply]
I’m not a very technical guy and always try to stick to fundamentals. Nonetheless, I use technicals as sentiment indicators and when fundamentals fail to give me answers. Anyways, I think fundamentally speaking the way Kharafi stocks trade next week will be THE major indicator on whether we break or not.
[Reply]
I think we might see a rebound on Kharafi’s stocks, but unless they come out with the details regarding the deal they wont hold up at those prices
[Reply]
It worked today
[Reply]
Saud Reply:
September 14th, 2009 at 2:19 am
believe me i wasn’t too happy it did, but i hope we will stop at the 7500s
[Reply]
Check this out…
I have not checked in here for some time because I thought it was getting boring, but the last several posts are great quality so I guess I will add you back to my everyday bloglist. You deserve it my friend
…