Karachi, October 25, 2022 (PPI-OT): KSE-100 Consolidation above 50-SMA

The index opened gapped up in the last trading session on normal volume. Possibility of a runaway gap which usually signifies a continuation of the trend. The local bourse posted an intraday high of 462pts, concluded with a gain of 134pts to settle at 42,347pts. The volumes clocked in the last trading session were comparatively lower than the previous trading session. There seems to be a good possibility that there may be an increase in volatility along with sharp fluctuations in the near future. Volume indicators reflect volume flowing into and out of the Index at a relatively equal pace. Among the strength Indicators, RSI (Relative Strength Index) is currently trading at a level of 59.70.

The chart formation depicts that the index may find initial support near 42,250. A break below mentioned support can result into further weakness towards 42,100 and 41,800pts level. Alternatively, the index can face resistance near 42,800pts initially and then head towards 43,100 and 43,250 area. It is recommended to accumulate positions on weakness with risk defined below support zone.