Karachi, In the latest session, the KSE-100 Index exhibited noticeable volatility, according to AKD Securities Limited's technical analysis. Opening on a promising note, the index navigated through peaks and valleys, with a zenith of 286 points and a nadir of 223 points, eventually concluding the day with a 200-point reduction to settle at 49,531 points.
This recent session experienced diminished trading volumes in comparison to its predecessor. A significant detail is that the Index's closing was 6.0% beneath its upper band, with Bollinger Bands demonstrating a 54.82% expansion compared to their standard width. This considerable band width signals a heightened volatility level. Current indications suggest an increased likelihood for this volatility to decrease, potentially stabilizing the Index within a consistent trading spectrum in the upcoming period. This broad band phenomenon has been persistent for two consecutive periods.
Key metrics, such as the Relative Strength Index (RSI), currently register at 79.10. Analyzing the chart's configuration reveals an impending support point for the index near 49,400 points. A descent below this threshold might further depress the index, steering it towards 49,200 and eventually 48,800 points. Conversely, immediate resistance might manifest near the 49,900 point mark, potentially propelling the index towards 50,400 and subsequently the 50,800 point area. AKD Securities recommends adopting a vigilant trading strategy in these uncertain times.