KASB Securities Limited and Economics Research- The Keystone – Equities

Karachi: KSE‐100: Formation suggests consolidation underway

According to KASB Securities Limited,

• The index registered a higher low while closing in the green. Its formation cluster suggests possible consolidation in the near term. The overall trend remains bullish.

• Owing to this corrective trend, the Stochastic Oscillator continues to decline and has come off quite a bit from the overbought region.

• KASB Securities Limited maintains KASB Securities Limited’s stance of accumulating on weakness.

Analysis and Overview:
The index opened marginally positive and traded within a narrow range in the first half. However, in the second half the index, it witnessed a steady uptrend which resulted in a positive closing. Volumes declined by 20.86% and stood at 75.60 million. The index registered a higher low while closing in the green. Its formation cluster suggests possible consolidation in the near term. The overall trend remains bullish. The former breakout trendline (black line, currently at 11,823 points) and further down the 200‐DMA, currently at 11,767 points are critical support levels.

Owing to this corrective trend the Stochastic Oscillator continues to decline and has come off quite a bit from the overbought region while the RSI has edged down from its overbought region as well. On the other hand, the MACD maintains its uptrend as well as buy signal on the daily chart and has now also generated a buy signal on the weekly chart.

KASB Securities Limited maintains KASB Securities Limited’s stance of accumulating on weakness.

The first support is at 11,879 points and the second support is at 11,802 points. The first resistance is at 12,032 points and the second resistance is at 12,097 points.

   

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