Karachi, May 22, 2023 (PPI-OT): KSE-100: Sustaining above 200-SMA

Market View - Technical

The index opened on a slightly positive note and faced a volatile session. The local bourse posted a high of 187pts, a low of 88pts and concluded with a gain of 157pts to settle at 41,599pts. The volumes clocked in the last trading session were comparatively higher than the previous trading session. The local bourse is currently 0.6% above its 200-period moving average. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into the Index. The trend forecasting oscillators are bullish and seem to cement bullish view.

The chart formation depicts that the index may find initial support near 41,300. A break below mentioned support can result into further weakness towards 41,100 and 40,800pts level. Alternatively, the index can face resistance near 41,800pts initially and then head towards 42,000 and 42,200 areas. It is recommended to trade with a cautious approach and focus on profit taking.