By: Mohamed Abu Meleh
Riyadh – Mubasher: The main index of the Saudi Stock Exchange (Tadawul) gained 2.39% or 154.89 points to stand at 6,647 points.
Tadawul went back again to the upward trend after the profit gaining that happened yesterday and the day before, Mohamed Al-Mimouni, financial analyst, told Mubasher.
The analyst added that the market is still trading above the averages of 50, 100 and 200 days on the short term, which means its continuity in the upward trend.
There are positive signals on the Relative Strength Index (RSI), which is a momentum oscillator that measures the speed and change of price movements, which indicates that the rises are logical, Al Mimouni noted.
Traded volume fell 10.67% to 350 million shares from 392 million shares on Tuesday, while turnover decreased 9.73% to SAR 5.29 billion, compared SAR 5.86 billion yesterday.
Seven transactions privately executed on the Saudi Stock Exchange on 867,260 shares on Wednesday at a total value of SAR 32.27 million.
Real Estate Investment Trusts sector (REIT) sector was the only loser and fell 1.2%.
The insurance topped the gaining sectors and rose 3.40%, followed by the transport and petrochemical sectors which increased 3.16% and 2.31%, respectively.
The analyst pinpointed that the market targets 6,700 points, which is considered a resistance zone, adding that the support zones expected for tomorrow are 6,500 and 6,400 points, while the resistance zone is likely to be at 6,700 points.
It is projected that the market would keep moving in the vertical trend between 6,500 and 6,600 till the results of OPEC meeting, which is planned to be held on 30 November to reach an agreement to freeze production.
Translated by: Sara Ghali
