Karachi, July 27, 2022 (PPI-OT): KSE-100: Inches up amid low volumes

The index opened on a positive note and remained faced a volatile session. The local bourse posted an intraday low of 138pts, a high of 291pts and concluded with a slight gain of 50pts to settle at 39,894pts. The volumes witnessed in the last trading session were higher than the last trading session. Among the strength indicators, RSI (14) is currently trading at 36.4 level. Currently the MACD is bearish since it is trading below its signal line. The MACD crossed below its signal line 5 trading sessions ago. Since the MACD crossed its moving average, the local bourse has decreased 1.23% and has ranged from a high of 41,551 to a low of 39,540.

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