Saudi Tadawul Index Flirting With Resistance at 6000
Feb, 08th 11:09
The Saudi Tadawul Index has been retracing its steps after the sharp selloff that knocked the index down about 16% in the first half of January 2016. The index is currently consolidating aroun the 6000 level, which marks the 50% retracement of the fall from 6500 to 5500 between the 5th and the 18th of January. A Break above the 6200 level could help the market find its feet again.
The tensions between Saudi and Iran have put the market in a state of wait and watch and the volatility has been falling over the last few trading sessions. A close below 5800 could howver reignite the bearish sentiment.
Trade Idea – Buy Digital Call Options on the Saudi Tadawul Stock Index on a break above 6200. Buy Digital Puts on a close below 5800. Valid Till 14/02/2016