Karachi, August 02, 2023 (PPI-OT): KSE-100_Closes above the upper band

Market View - Technical

The index opened with a positive note and faced a volatile session. The local bourse posted a high of 407pts and concluded with a gain of 196pts to settle at 48,231pts. The volumes witnessed in the last trading session were comparatively lower than the previous trading session. The Index closed above the upper band by 4.0%. This combined with the steep uptrend suggests that the upward trend could continue. However, a short-term pull-back inside the bands is likely. The MACD is bullish since it is trading above its signal line. Since the MACD crossed its moving average, the local bourse has increased 9.87% and has ranged from a high of 48,442 to a low of 43,405.

The chart formation depicts that the index may find initial support near 47,800. A break below mentioned support can result into further weakness towards 47,500 and 47,100pts level. Alternatively, the index can face resistance near 48,500pts initially and then head towards 48,700 and 48,900 areas. It is recommended to trade with a cautious approach and focus on profit taking.