FLASHNEWS:

AKD Securities Limited – AKD Technical Daily (December 26, 2022)

Karachi, December 26, 2022 (PPI-OT): KSE-100: Pullback likely to continue

The index opened on a negative note and faced a volatile session amidst low volumes. The local bourse posted an intraday low of 341pts and concluded with a loss of 169pts to settle at 39,669pts. The volumes clocked in the last trading session were comparatively lower than the previous trading session. The index closed above the lower band by 4.4%. Bollinger Bands are 28.16% wider than normal. A pullback could be expected in near term. The stochastic oscillator is currently below 20. This is an indication that the index is facing an oversold condition.

The chart formation depicts that the index may find initial support near 39,200. A break below mentioned support can result into further weakness towards 38,800 and 38,600pts level. Alternatively, the index can face resistance near 40,000pts initially and then head towards 40,400 and 40,600 area. It is recommended to trade with a cautious approach.