AKD Securities Limited – AKD Technical Daily (December 07, 2022)
Karachi, December 07, 2022 (PPI-OT): KSE-100 – Short term pullback likely
The index opened on a slightly positive note and faced a volatile session amidst low volumes. The local bourse posted an intraday high of 133pts, a low of 318pts and concluded with a loss of 73pts to settle at 41,540pts. The volumes clocked in the last trading session were lower than the previous trading session. The Index broke below the uptrend line 41,600-700 area. This is a bearish sign. Volume on the breakout was quite light below average. Among the strength indicators, RSI (Relative Strength Index) is currently trading at 36.5 level. A short term pullback inside the band is likely.
The chart formation depicts that the index may find initial support near 41,300. A break below mentioned support can result into further weakness towards 41,100 and 40,800pts level. Alternatively, the index can face resistance near 41,800pts initially and then head towards 42,200 and 42,500 area. It is recommended to trade with a cautious approach.