Karachi, January 07, 2022 (PPI-OT): KSE-100 Index: A black body occurred

The index opened on a negative note and underwent a bearish session. The local bourse posted a low of 389pts and concluded with a loss of 326pts to settle at 45,082pts level while trading volumes increased by 37% DoD. A black body occurred, during the past 10 trading sessions, there have been 5 white candles and 5 black candles. Additionally, During the past 50 trading sessions, there have been 23 white candles and 27 black candles for a net of 4 black candles. The local bourse is currently 2.0% below its 200-period moving average on daily chart.

The chart formation indicates that the index may find initial support near 44,800. A break below mentioned support can result into further weakness towards 44,500 and 44,300pts level. On the other hand, the index can face resistance near 45,450pts on the higher side initially and then head towards 45,600 area. Among the strength indicators, RSI clocked-in at 56.9, lower as compared to the previous trading day. It is recommended to accumulate positions near support zone with risk defined below 44,800.