Karachi, January 19, 2023 (PPI-OT): KSE-100: Pullback inside the band is likely
The index opened on a negative note and faced a volatile trading session. The local bourse posted an intraday low of 85pts, a high of 604pts and concluded with a gain of 449pts to settle at 38,791pts. The volumes clocked in the last trading session were comparatively lower than the previous trading session. The index is currently sustaining below minor and major moving averages on daily charts. Daily parabolic SAR (Stop and Reverse) is currently appearing above the current level of the index. Among the strength indicators, RSI (Relative Strength Index) is showing some recovery from an oversold reading.
The chart formation depicts that the index may find initial support near 38,400. A break below mentioned support can result into further weakness towards 38,100 and 37,800pts level. Alternatively, the index can face resistance near 39,100pts initially and then head towards 39,500 and 39,800 area. It is recommended to accumulate positions on weakness with risk defined below support zone.