Karachi, In the latest trading session, the Karachi Stock Exchange's KSE-100 Index displayed a bullish trend, forming a higher high with a significant gain. The index opened on a slightly negative note but remained bullish, concluding with a notable gain and reflecting an increase in market volatility.
According to AKD Technical, the KSE-100 Index posted a high of 684 points during the session and settled at 54,261 points, marking a gain of 526 points. This performance was accompanied by a slight increase in trading volumes compared to the previous session. The Index closed 2.9% below the upper Bollinger Band, indicating high market volatility, which has been prevalent for the last eighteen trading sessions.
The technical analysis suggests that the index may find initial support near 53,900 points. A break below this level could lead to further weakness towards 53,600 and 53,350 points. On the flip side, initial resistance is anticipated near 54,400 points, with the potential to ascend towards the 54,800 and 55,100 points area.
Given the current market conditions, characterized by high volatility and a wide range of the Bollinger Bands, AKD Technical recommends a cautious trading approach. Investors are advised to accumulate positions on weakness, considering the increased probability of market fluctuations in the near term.