Karachi, January 31, 2022 (PPI-OT): KSE-100 – Shooting star pattern occurred

The index opened with a negative bias and faced a volatile session amidst low volumes. The local bourse posted a low of 52pts, a high of 229pts while concluded with a marginal loss of 5pts to settle at 45,078pts level. The trading volumes declined by ↑1% DoD. A shooting star occurred. The long upper shadow indicates that the bears are gaining control and buyer should remain cautious.

The chart formation depicts that the index may find initial support near 44,950. A break below mentioned support can result into further weakness towards 44,700 and 44,475pts level. Alternatively, the index can face resistance near 45,200pts initially and then head towards 45,350 and 45,550 area. It is recommended to trade with a cautious approach and use stop loss during intraday trading.