Karachi, May 18, 2022 (PPI-OT): KSE-100: Choppy trading session witnessed

The index opened on a positive note and a range bound activity witnessed. The local bourse posted an intraday high of 220pts, a low of 62pts and concluded with a gain of 59pts to settle at 42,726pts level. A choppy session witnessed as index closed near to the area where it opened. The index is hovering in an important area. The index broke below an important trend line support (42,800) on closing basis which cements a bearish view. The Index is currently 5.7% below its 200-period moving average. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.

The chart formation depicts that the index may find initial support near 42,300. A break below mentioned support can result into further weakness towards 42,000 and 41,600pts level. Alternatively, the index can face resistance near 42,800pts initially and then head towards 43,300 and 43,600 area. It is recommended to trade with a cautious approach and use stop loss during intra day trading.