AKD Securities Limited – AKD Technical Daily (30 -03 -2023)

Karachi, March 30, 2023 (PPI-OT): KSE-100: Faces a volatile session

The index opened on a positive note and faced a volatile session. The local bourse posted an intraday high of 105pts, a low of 216pts and concluded with a loss of 206pts to settle at 39,880pts. The volumes clocked in the last trading session were slightly higher than the previous trading session. A bearish candlestick occurred. During the past 10 trading sessions, there have been 3 white candles and 7 black candles for a net of 4 black candles. Among the momentum indicators, RSI (Relative Strength Index) is currently at 34.26. The Index has set a new 14-day low (Closing) while the RSI has not. This is usually a bullish divergence.

The chart formation depicts that the index may find initial support near 39,800. A break below mentioned support can result into further weakness towards 39,500 and 39,200pts level. Alternatively, the index can face resistance near 40,400pts initially and then head towards 40,700 and 41,000 area. It is recommended to accumulate positions on weakness with risk defined below support zone.