Karachi, August 09, 2023 (PPI-OT): KSE-100 - Big bearish candle occurred

Market View - Technical

The index opened on a slightly negative note and faced a bearish session. The local bourse posted a high of 29pts, a low of 1,051pts and concluded with a loss of 956pts to settle at 47,430pts. The volumes witnessed in the last trading session were lower than the previous trading session. A big bearish candle occurred. This is usually a bearish sign, as Index closed significantly lower than opening level. During the past 10 trading sessions, there have been 6 white candles and 4 black candles for a net of 2 white candles. Among the momentum indicators, the RSI has just reached its lowest value in the last 14 trading sessions.

The chart formation depicts that the index may find initial support near 47,100. A break below mentioned support can result into further weakness towards 46,800 and 46,500pts level. Alternatively, the index can face resistance near 47,700pts initially and then head towards 48,000 and 48,350 areas. It is recommended to trade with a cautious approach and focus on profit taking.