Karachi, January 09, 2023 (PPI-OT): KSE-100: Likely to head towards 50-SMA

The index opened on a slightly positive note and remained bullish. The local bourse posted an intraday high of 381pts and concluded with a gain of 291pts to settle at 41,008pts. The volumes clocked in the last trading session were comparatively higher than the previous trading session. The MACD is bullish since it is trading above its signal line. The MACD crossed above its signal line four trading sessions ago. Since the MACD crossed its moving average, the Index has gained 0.47% and has ranged from a high of 41,097 to a low of 40,348. The RSI has just reached its highest value in the last 14 trading sessions which is a bullish.

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 40,100pts level. Alternatively, the index can face resistance near 41,100pts initially and then head towards 41,400 and 41,800 area. It is recommended to accumulate positions on weakness.