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AKD Securities Limited – AKD Technical Daily (December 05, 2022)

Karachi, December 05, 2022 (PPI-OT): KSE-100: Hovering near 50-SMA

The index opened on a negative note and faced a bearish session amidst low volumes. The local bourse posted an intraday high of 77pts only, a low of 447pts and concluded with a loss of 243pts to settle at 42,150pts. The volumes clocked in the last trading session were slightly higher than the previous trading session. The index retested 50-SMA and closed above it. The index is already trading below middle Bollinger band and among the strength indicators, RSI (Relative Strength Index) noted at 45.16 level. Closing below 50-SMA (Simple Moving Average) could enhance the chance for a further decline.

The chart formation depicts that the index may find initial support near 41,900. A break below mentioned support can result into further weakness towards 41,600 and 41,200pts level. Alternatively, the index can face resistance near 42,450pts initially and then head towards 42,900 and 43,100 area. It is recommended to trade with a cautious approach.