Karachi, May 26, 2023 (PPI-OT): KSE-100 - Remains firm above 50-SMA

The index opened on a slightly positive note and traded in a narrow range. The local bourse posted a high of 102pts, a low of 160pts and concluded with a loss of 88pts to settle at 41,029pts. The volumes clocked in the last trading session were comparatively higher than the previous trading session. The Index is currently consolidating above 50-Simple Moving Average on daily chart. MACD is bearish since it is trading below its signal line. The MACD crossed below its signal line 5 trading sessions ago. Among the strength Indicators, RSI (Relative Strength Index) is currently at reading 45.95.

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 40,200pts level. Alternatively, the index can face resistance near 41,400pts initially and then head towards 41,800 and 42,100 area. It is recommended to accumulate positions on weakness with risk defined below support zone.