Karachi, December 10, 2019 (PPI-OT): An Engulfing Bear; Correction to continue
The KSE-100 index initiated the corrective trend to close at 40,443, down 289 points. Volumes stood at 320mn shares versus 417mn shares traded previously. The index is expected to revisit yesterday’s low of 40,315 where a drop below will extend the decline towards 39,447. However, any upside will face resistance in the range of 40,555-40,920 where a break above will invalidate the corrective view. Meanwhile, an Engulfing Bear has occurred which indicates potential further downside. Moreover, the RSI and the Stochastic Oscillator have moved down, supporting a corrective view. JS Securities Limited recommends investors to ‘Sell on Strength’, with risk defined above 40,916. The support and resistance are at 40,120 and 40,769, respectively.
FFC: Downside target remains intact
Strategy: ‘Sell on Strength’ – targeting Rs99.90 and Rs97.62; stoploss at Rs106.40.
UBL: Correction to continue
Strategy: ‘Sell on Strength’ – targeting Rs158.23 and Rs151.68; stoploss at Rs171.90.