Karachi, August 04, 2022 (PPI-OT): KSE-100 – Upward ride amidst ascending volumes

The index opened with a positive bias and faced a bullish session. The local bourse posted an intraday high of 1,016pts and concluded with a gain of (Upward) 877pts to settle at 41,069pts. The volumes clocked in the last trading session were comparatively higher than the last trading session. The index broke above the down trend line in the last trading session. This is a bullish sign. This down trend line, currently with an ending point at 40,600, may now provide downside support. Volume on the day of the breakout was quite heavy 46% above average volumes. This makes the breakout even more significant.

The chart formation depicts that the index may find initial support near 40,600. A break below mentioned support can result into further weakness towards 40,300 and 40,000pts level. Alternatively, the index can face resistance near 41,400pts initially and then head towards 41,700 and 42,100 area. It is recommended to accumulate positions on weakness with risk defined below 40,500 area.