UPDATE: Is the Saudi Stock Market Winding Up for a Big Move? — Saudi Stock Market Analysis — GCC Market Analytics

In a previous post last week I noted how the Saudi Tadawul Index had been consolidating over the past six months and the potential for a big price move ahead. Well, as you can see from the updated chart below, the Index has now risen above the upper trading range.

Will this lead to a big upside price movement? Or will this turn out to be a "fake" breakout with prices quickly reversing lower and back into the consolidation range?

Well, from the perspective of this week's Saudi market analysis the outlook is positive for the next few trading sessions. Currently, the Tadawul Index is experiencing the strongest trend conditions with the short, medium and long-term trends all pointing upwards.

Saudi market breadth has also turned positive which, in the past, has corresponded with rising Index levels.

So things look good for the short-term. For the longer-term it's a case of wait and see.

* username: rupertbu