Karachi, May 10, 2022 (PPI-OT): KSE-100: A Big black candle occurred

The index opened with a negative note and underwent a bearish session. The local bourse posted an intraday low of 1,608pts and concluded with a loss of 1,448pts to settle at 43,393pts level. The index is currently trading below major moving averages on daily chart. A closing below 50-SMA cements a bearish view. The volumes reflected in the last trading session were comparatively higher than the previous trading session. MACD is bearish since it is trading below its signal line. The MACD crossed below its signal line 4 sessions ago. The RSI has just reached its lowest value in the last 14 trading sessions.

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 42,750 and 42,300pts level. Alternatively, the index can face resistance near 43,600pts initially and then head towards 44,000 and 44,400 area. It is recommended to trade with a cautious approach and use stop loss during intra day trading.