Karachi, August 22, 2022 (PPI-OT): KSE-100: Dip seems to be an opportunity

The index opened with a negative note and remained volatile throughout the last trading session. The local bourse posted an intraday high of 52pts, a low of 252pts and concluded with a loss of (Downward) 211pts to settle at 43,271pts. The volumes clocked in the last trading session were comparatively lower than the previous trading session. The index seems to slide towards 100-SMA which is currently lying near or at 42,815 area, the 23.6% of the Fibonacci retracement of the current rally also lying near the aforementioned area.

The chart formation depicts that the index may find initial support near 43,100. A break below mentioned support can result into further weakness towards 42,800 and 42,500pts level. Alternatively, the index can face resistance near 43,600pts initially and then head towards 43,900 and 44,400 area. It is recommended to accumulate positions on weakness with risk defined below support zone.