Karachi, The KSE-100 index opened on a positive note but ended the day down by 1,048 points at 71,695 after a volatile trading session,

According to AKD Securities Limited. The index struggled to maintain its earlier gains, posting a high of 558 points but subsequently dropping to a low of 1,140 points.

The local stock market's recent performance shows a predominance of bearish indicators. The Relative Strength Index (RSI) is currently at 70.40, suggesting overbought conditions that might lead to a bearish trend. The big red candle on today's chart, indicating a close significantly lower than the opening level, further supports this outlook. Over the past ten sessions, the market recorded six red candles against four green ones, reflecting a net negative trend.

Technical analysis predicts that the index may encounter initial support near 71,200 points. If this level breaks, further declines toward 70,700 and 70,400 points are likely. Conversely, resistance is expected around 71,800 points, with additional hurdles potentially at 72,300 and 73,500 points.

Given the current market dynamics and technical setup, AKD Securities advises investors to trade with caution. The market's direction appears uncertain with potential for further declines, highlighting the need for strategic and careful trading decisions.