Karachi, January 16, 2023 (PPI-OT): KSE-100: Bearish candle witnessed
The index opened on a negative note and faced a bearish trading session. The local bourse posted an intraday low of 608pts and concluded with a loss of 480pts to settle at 40,323pts. The volumes clocked in the last trading session were comparatively lower than the previous trading session. A bearish candle stick posted in the last trading session which usually implies a continuation of bearish trend. The Index closed below the upper band by 48.8%. Bollinger Bands are 25.41% narrower than normal.
The chart formation depicts that the index may find initial support near 40,150. A break below mentioned support can result into further weakness towards 39,800 and 39,500pts level. Alternatively, the index can face resistance near 40,500pts initially and then head towards 40,800 and 41,100 area. It is recommended to trade with a cautious approach.