Karachi, June 12, 2023 (PPI-OT): KSE-100 - Trading above middle Bollinger Band
The index opened on a positive note and remained volatile throughout the last trading session. The local bourse posted a low of 9pts, a high of 245pts and concluded with a gain of 218pts to settle at 41,904pts. The volumes clocked in the last trading session were slightly lower than the previous trading session. The Index closed below the upper band by 21.3%. Bollinger Bands are 44.19% narrower than normal. The narrow width of the bands suggests low volatility as compared to normal range of the Index. During the last ten trading sessions, there have been 7 white candles and 3 black candles for a net of 4 white candles. Among the momentum Indicators, RSI (Relative Strength Index) is currently trading at a level of 57.24 which is above to the neutral mark.
The chart formation depicts that the index may find initial support near 41,500. A break below mentioned support can result into further weakness towards 41,100 and 40,800pts level. Alternatively, the index can face resistance near 42,000pts initially and then head towards 42,350 and 42,700 area. It is recommended to trade with a cautious approach and focus on profit taking near resistance zone.