Karachi, September 02, 2022 (PPI-OT): KSE-100: Consolidating below 21-SMA

The index opened on a positive note and faced a volatile session. The local bourse posted an intraday high of 316pts, a low of 24pts and concluded with a gain of (Upward) 109pts to settle at 42,460pts. The volumes clocked in the last trading session were comparatively higher than the previous trading session. The index is consolidating below 21-SMA (Simple Moving Average) on daily chart. The histogram of MACD is in the negative trajectory since it is trading below its signal line. The MACD crossed below its signal line 3 trading sessions ago.

The chart formation depicts that the index may find initial support near 42,000. A break below mentioned support can result into further weakness towards 41,800 and 41,500pts level. Alternatively, the index can face resistance near 42,600pts initially and then head towards 42,900 and 43,300 area. It is recommended to accumulate positions on weakness with risk defined below support zone.