Karachi: The KSE-100 index demonstrated bullish momentum by closing sharply higher, despite experiencing volatility during Tuesday's trading session. The benchmark index recorded an intraday high of 2,979 points and a low of 73 points before settling with a robust gain of 2,849 points, ending the day at 168,490.

Despite the market's strong finish, participation levels declined, with trading volumes falling by 23% compared to the previous session. The formation of a large white candle was observed, a technical indicator often associated with bullish activity, as the index closed significantly above its opening level. Over the past ten sessions, the market has alternated between positive and negative closings, with five sessions ending in gains and five in losses.

The index ended above the upper band by 10.8%, indicating potential for further upward movement. However, analysts suggest that the market is more likely to continue within its current trading range rather than see a breakout to the upside.

Technical analysis points to immediate support at 168,100. A fall below this level could lead to further declines, targeting 167,500 and 166,800. Conversely, resistance is expected at 169,550, with additional barriers at 170,600 and 171,500. Market participants are advised to maintain a cautious trading approach, considering the use of a trailing stop-loss strategy.