Karachi, September 01, 2023 (PPI-OT): KSE-100: Trades below lower Bollinger Band

Market View - Technical

The index opened on a positive note and faced a bearish session. The local bourse posted a low of 1,785pts and concluded with a loss of 1,242pts to settle at 45,002pts. The volumes witnessed in the last trading session were comparatively higher than the previous trading session. The Index is currently 6.6% above its 200-period moving average and has been forming a higher low. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of the Index at a relatively equal pace. Trend forecasting oscillators are currently bearish on the local bourse.

The chart formation depicts that the index may find initial support near 44,600. A break below mentioned support can result into further weakness towards 44,200 and 43,800pts level. Alternatively, the index can face resistance near 45,600pts initially and then head towards 46,000 and 46,500 areas. It is recommended to accumulate positions on weakness with risk defined below support zone.