Karachi, January 06, 2022 (PPI-OT): KSE-100 Index: Could resist around 100-SMA

The index opened on a slightly positive note and faced a volatile session. The local bourse posted a low of 154pts, a high of 47pts and concluded with a gain of 17pts to settle at 45,408pts level while trading volumes decreased ↓28% DoD. Currently, the MACD is bullish since it is trading above its signal line. The MACD crossed above its signal line 14 trading sessions ago. In the meantime, local bourse has increased 3.83% and has ranged from a high of 45,438 to a low of 43,556.

The chart formation indicates that the index may find initial support near 45,200. A break below mentioned support can result into further weakness towards 45,000 and 44,800pts level. On the other hand, the index can face resistance near 45,500pts on the higher side initially and then head towards 45,800 area. Among the strength indicators, RSI clocked-in at 61.6, slightly lower as compared to the previous trading day. It is recommended to accumulate positions near support zone with risk defined below 44,800.