Karachi, May 10, 2023 (PPI-OT): KSE-100_200-SMA tested; likely to hold,

The index opened on a flat note and faced a bearish session in the last trading session. The local bourse posted an low of 552pts and concluded with a loss of 456pts to settle at 41,374pts. The volumes clocked in the last trading session were comparatively higher than the previous trading session. During the past 10 sticks, there have been 6 white sticks and 4 black sticks for a net of 2 white sticks.

Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. There is a good possibility that volatility will decrease and Index will stabilize in the near term. The Index tested 200-SMA on the downside in the last trading session. Daily parabolic SAR (Stop and Reverse) is currently appearing above the current level of the Index.

The chart formation depicts that the index may find initial support near 41,100. A break below mentioned support can result into further weakness towards 40,800 and 40,500pts level. Alternatively, the index can face resistance near 41,500pts initially and then head towards 41,800 and 42,100 area. It is recommended to book profits on defined resistance zone and trade with a cautious approach.