Karachi, September 07, 2022 (PPI-OT): KSE-100: Closes above 50-SMA amid low volumes

The index opened on a slightly positive note and a range bound activity witnessed. The local bourse posted an intraday low of 175pts, a high of 68pts and concluded with a gain of (Upward) 1pt only to settle at 41,860pts. The volumes clocked in the last trading session were comparatively lower than the previous trading session. The index took a breath near 50-SMA on daily chart. A long lower shadow candle occurred which is considered as a bullish signal. According to Fibonacci retracement the index is hovering near 50% of the retracement of the rally occurred in recent past.

The chart formation depicts that the index may find initial support near 41,700. A break below mentioned support can result into further weakness towards 41,400 and 41,200pts level. Alternatively, the index can face resistance near 42,200pts initially and then head towards 42,600 and 42,900 area. It is recommended to accumulate positions on weakness with risk defined below support zone.