Kuwait Stock Exchange has reached crucial level, not seen since last December. For past two weeks market witnessed heavy selling pressure amid the international worry of the EU debt burden and the fall in the Oil prices.
Now the whole question is, "will the market continue to tank further?"
From the technical view, one can expect the index to fall further as there is no positive sign of reversal - MACD perspective. On the other hand, RSI is indication that the market is oversold. Now this is a sort of conflicting signal. From the historical view, we were twice in such a conflicting situation (since start of 2009), and both the times the index had jumped.
Another point to be noted is that the Price Index is currently trailing 5% below the 50D EM-AVG. Again from the historical perspective, the markets had recovered in past and the index jumped and well crossed the 50D Exponential Moving Average.
Does this mean, we will see the index recovering from these levels??
Happy Investing !!!
Bloomberg data
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