Karachi, August 03, 2022 (PPI-OT): KSE-100: Engulfing bullish candlestick

The index opened on a negative note and faced a volatile session with a swing movement of 705pts. The local bourse posted an intraday high of 385pts, a low of 320pts and concluded with a gain of (Upward) 115pts to settle at 40,192pts. The volumes clocked in the last trading session were comparatively higher than the last trading session. An engulfing bullish candlestick occurred. It usually signifies that the momentum may be shifting from the bears to the bulls. From current charts it seems like that a potential short term pull back could be witnessed in near future.

The chart formation depicts that the index may find initial support near 40,000. A break below mentioned support can result into further weakness towards 39,700 and 39,500pts level. Alternatively, the index can face resistance near 40,600pts initially and then head towards 40,900 and 41,300 area. It is recommended to accumulate positions on weakness with risk defined below 39,200 area.