Karachi, July 14, 2023 (PPI-OT): KSE-100_Profit taking witnessed

Market View - Technical

The index opened with a gap and remained volatile during the last trading session. The local bourse posted a high of 456pts, a low of 259pts and concluded with a loss of 248pts to settle at 45,267pts. The volumes clocked in the last trading session were slightly higher than the previous trading session. Profit taking across the board witnessed as Index remained bullish in the early hours of the last trading session but pared all gains at one point. Among the momentum Indicators, RSI (Relative Strength Index) is currently trading at 74.13 and daily parabolic SAR (Stop and Reverse) is below the current level of the Index. The Index closed below the upper band by 12.8%. Bollinger Bands are 198.18% wider than normal. The large width of the bands suggest high volatility as compared to the normal range of the Index.

The chart formation depicts that the index may find initial support near 45,000. A break below mentioned support can result into further weakness towards 44,500 and 44,100pts level. Alternatively, the index can face resistance near 45,500pts initially and then head towards 46,100 and 46,500 areas. It is recommended to trade with a cautious approach and focus on profit taking.