Karachi, March 21, 2023 (PPI-OT): KSE-100 – Heading towards 50-SMA
The index opened on a slightly positive note and faced a bearish session amidst good volumes. The local bourse posted an intraday high of 68pts, a low of 420pts and concluded with a loss of 412pts to settle at 40,918pts. The volumes clocked in the last trading session were comparatively lower than the previous trading session. The Index seems to head towards 50-SMA (Simple Moving Average) which currently resides at a level of 40,756pts. Among the strength indicator, RSI (Relative Strength Index) is showing some weakness and falling below the neutral mark. During the last 10 trading sessions, there have been 4 white candles and 6 black candles for a net of 2 black candles. The Index has been posting black candles for the last three consecutive trading sessions.
The chart formation depicts that the index may find initial support near 40,800. A break below mentioned support can result into further weakness towards 40,500 and 40,300pts level. Alternatively, the index can face resistance near 41,200pts initially and then head towards 41,500 and 41,800 area. It is recommended to trade with a cautious approach.