GCC markets' performance depends on crossing resistance levels – Analyst

July 20, 2015 9:44 AM

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Kuwait-Mubasher: GCC stock markets closed last week on a positive note after having witnessed remarkable speculations, said capital market expert Ibrahim Al-Failakawi.

He added that the exchanges were boosted by the positive global news, including the Iranian nuclear deal and Greek bailout.

The markets' trend will depend on breaking through resistance levels, Al-Failakawi said, indicating that if the markets cross their resistance levels, they will complete their positive performance. However, if they fail to break the resistance barriers, they will return to their bearish activity.

The expert advised speculators to focus only on high-turnover stocks, and to shun away from trading if stocks break their support levels.

If KSE's benchmark stabilises above 6,270 points, it will extend its positive performance until hitting the 6,300, Al-Failakawi said. He added that if the index crosses this level, it will target 6,370 points. However, in case of returning to the bearish performance, the support will stand at 6,250 points. Thus, if the index breaks this level, it will decline to 6,200 points. In this case, investors should shun away from trading until the index holds position above this level, the expert said.

If Tadawul All-Share Index (TASI) consolidates above the 9,300 level, it will continue its rally until reaching the 9,400, Al-Failakawi said, adding that if the index breaks through this level, it will target the 9,500. However, in case of returning to the negative performance, the support will stand at 9,270 points. If the index breaks this level, it will head towards 9,200 points. In this case, traders should stay away from the market until the benchmark holds position above this level.

If DFM's benchmark stabilises above 4,100 points, it will complete its rally until reaching 4,180 points. In case of breaking this level, the gauge will target 4,230 points. However, in case of returning to the negative performance, the support will stand at 4,080 points. If the index breaks this level, it will decline to 4,000 points. In this case, investors should completely shun away from trading until the index consolidates above this level.

If ADX's benchmark holds position above 4,800 points, it will complete its upward trend until reaching 4,950 points. In case of crossing this level, the index will target 5,050 points. However, in case of returning to the bearish performance, the support will stand at 4,750 points. If the index breaks this level, it will decline to 4,600 points. In this case, investors should completely stay away from trading until the index consolidates above this level.

If QE's benchmark stabilises above 12,000 points, it will complete its rally until reaching 12,100 points. In case of breaking this level, the index will target 12,200 points. However, in case of returning to the negative performance, the support will stand at 12,000 points. If the index breaks this level, it will decline to 11,900 points. In this case, investors should completely shun away from trading until the index consolidates above this level.

Source: english.mubasher.info

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