AKD Securities Limited – AKD Technical Daily (29-05-2023)

Karachi, May 29, 2023 (PPI-OT): KSE-100: Sustaining above 100-SMA

The index opened on a positive note and faced a volatile session. The local bourse posted a high of 120pts, a low of 245pts and concluded with a loss of 65pts to settle at 40,965pts. The volumes clocked in the last trading session were comparatively higher than the previous trading session. The Index is currently consolidating above 100-Simple Moving Average on daily chart. MACD is bearish since it is trading below its signal line. The RSI has just reached its lowest value in the last 14 trading sessions. The current reading of RSI at 44.89. Daily parabolic SAR (Stop and Reverse) is currently appearing above the current level of the Index.

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.