Karachi, July 31, 2023 (PPI-OT): KSE-100_Continues to post higher highs

Market View - Technical

The index opened on a positive note and remained bullish throughout the last trading session. The local bourse posted a high of 711pts and concluded with a gain of 395pts to settle at 47,077pts. The volumes witnessed in the last trading session were comparatively higher than the previous trading session. The local bourse is forming a higher high and a higher low for the last eight consecutive trading sessions. It is trading above major moving averages on daily chart and daily RSI (Relative Strength Index) is currently trading at 82.18. During the past ten trading sessions, there have been five white candles and five black candles.

The chart formation depicts that the index may find initial support near 46,500. A break below mentioned support can result into further weakness towards 46,100 and 45,800pts level. Alternatively, the index can face resistance near 47,500pts initially and then head towards 47,800 and 48,100 areas. It is recommended to trade with a cautious approach and focus on profit taking.