Karachi: KSE-100: Test of resistance trendline cannot be ruled out According to KASB Securities Limited,
• The index registered a lower high and a higher low while sustaining above its former resistance trendline above which it has given a breakout. However, its formation is mildly bearish and suggests a possible test of the trendline.
• The Stochastic Oscillator maintains its buy signal while the RSI continues to rise while maintaining its buy signal as well.
• KASB Securities Limited maintains KASB Securities Limited’s bullish stance on the market.
Analysis and Overview:
The index opened positive and witnessed profit selling around its day’s high only to close in the green. Volumes were flat and stood at 232mln however volumes were skewed to the third-tier stocks. The index registered a lower high and a higher low while sustaining above its former resistance trendline above which it has given a breakout. However, its formation is mildly bearish and suggests a possible test of the trendline. Having said that, as long as the index holds above the trendline, the overall trend remains bullish. The Stochastic Oscillator maintains its buy signal while the RSI continues to rise while maintaining its buy signal as well. Additionally the 30-DMA maintains its strong uptrend and has now cut the 200-DMA from below thus adding credence to the medium-term bullish trend.
KASB Securities Limited maintains KASB Securities Limited’s bullish stance on the market.
The first support is at 12,455 points and the second support is at 12,389 points. The first resistance is at 12,575 points and the second resistance is at 12,639 points.
