BASI: Assessing Our Positive View

The Bahraini stock market has been on shaky ground since we initiated a long position back on October 1, since when it has rallied, but then fallen back, resulting in a disappointing overall loss of 1.5%. We maintain our stop-loss level of 1,530, with a break through the August low of 1,480 being a worst case scenario, which would presage more severe losses. The bottoming pattern we identified has fallen through, and the technical outlook is no longer particularly encouraging on the daily or weekly charts (although the monthly looks a bit better).

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