Now that I have looked at Kuwait stocks, I remembered someone requesting for analysis on Saudi index. The first thing I checked was what was my last comment on any Saudi Stock. The update on Saudi Steel Pipes was posted on April 11. So let us see how it turned out first.
A colleague asked for Elliott Wave Analysis of Saudi Steel Pipes Company. This is a Saudi Arabia-based manufacturer of welded steel pipes. The chart shows a dramatic fall from around 36.50 Riyals in Q1 of 2010 all the way down to under 19 Riyals by Q4. The recovery from the low of 18.72 appears to be a 5-wave affair, and as we know, if the first movement in a new direction is made up of 5 waves, we will get a 3rd step in the same direction. Interestingly, we got a deep (100%) retracement as a second wave, setting up a double bottom. We are currently in either wave 3 or wave C. Either way the stock looks well bid, and once we overcome 25.60, a move to 27.60 shouldn’t take long. A low-risk buy level comes at 24 and 23.50
There are few other approaches to the financial markets that serve us better than Elliott Wave Analysis. As I have said so often, an extended 5th wave can make us rich. Take SABIC for example. Just as recently as 12th May I had warned of a sell off to 75. At that time the SABIC was trading at 103 plus levels. By 25th May, the stock had already moved down by over 25% to test 76.75. The recovery since then has been strong, but I am not convinced that we are finished with the selling. Stay on the sidelines until we reach at least 66. Good luck. Ramki
P.S. I am on holidays for 3 weeks starting 2nd June – R
Here I present you with elliott wave analysis of Al Rajhi Bank, Saudi Arabia. As you can see, this stock too has behaved quite technically in the past, and elliott wave analysis suggests that we will eventually get a move that will take us to the previous fourth wave level. So I suggest buying on any 50% pull back with suitable stops.
Here is the Elliott Wave Analysis of Saudi Basic Industries Corporation, or SABIC. Actually there are two charts that I would like you to see. The first is a monthly chart that shows the huge 5-wave rally to 252.61 has been corrected by a 3-wave decline. Wave B retraced Wave A by 61.8%, and then we got the unholy dump.
The second chart on the right shows not only the internal waves of Wave C, but more interestingly, the current rally from the lows. What I can see is an extended 5th wave. Now you all know how much I love a fifth wave extension, because fifth waves can make you rich. Go back and see the numerous examples of extended fifth waves in this blog and you will be amazed! Once we finish this fifth wave, I am looking for a sharp sell off that can easily take the stock of SABIC down to the 75 or even 66 Saudi Riyals level. So be ready for that event.