Karachi, August 17, 2023 (PPI-OT): KSE-100: Closes with a bullish bias

Market View - Technical

The index opened on a slightly positive note and faced a bearish session. The local bourse posted a low of 457pts and concluded with a loss of 419pts to settle at 48,146pts. The volumes witnessed in the last trading session were comparatively lower than the previous trading session. A bearish candle stick occurred in the last trading session. During the past 10 trading sessions, there have been 5 white candles and 5 black candles. Bollinger Bands are 68.56% wider than normal. The large width of the bands suggest high volatility as compared to the normal range of the Index. Momentum oscillator RSI (Relative Strength Index) has set a new 14-period low while the Index level has not. This is a bearish divergence.

The chart formation depicts that the index may find initial support near 48,000. A break below mentioned support can result into further weakness towards 47,700 and 47,400pts level. Alternatively, the index can face resistance near 48,500pts initially and then head towards 48,800 and 49,100 areas. It is recommended to trade with a cautious approach and focus on profit taking.