Karachi, September 12, 2022 (PPI-OT): KSE-100: Index sustains above 50-SMA

The index opened on a flat note and a remained firm above 50-SMA on daily chart. The local bourse posted an intraday high of 275pts and concluded with a gain of (Upward) 123pts to settle at 41,948pts. The volumes clocked in the last trading session were comparatively higher than the previous trading session. The index closed above 50-SMA on daily chart and remained firm above it during the last trading session. Among the strength indicators, RSI (Relative Strength Index) is although trading below its neutral mark of 50 but no divergence witnessed among the Index level and the RSI.

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.