Karachi, May 19, 2020 (PPI-OT): An Engulfing Bear; stay cautious
The KSE-100 index posted a loss of 203 points to close at 33,805. Volumes stood at 262mn shares versus 213mn shares traded previously. The current formation is an Engulfing Bear, which indicates a negative trend ahead, however, a confirmation is required. Meanwhile, a break above 34,393 will continue the uptrend with 35,633 as the next target. However, a fall below 33,770 will confirm the bearish view with 32,697 as the downside target. The RSI and the Stochastic Oscillator have moved down, suggesting a corrective trend ahead. A cautious stance is required at current levels. The support and resistance are at 33,453 and 34,160, respectively.
ABL: Downside target remains intact
Strategy: ‘Sell on Strength’ – targeting Rs65.21; stoploss at Rs72.85.
NRL: Upside to continue
Strategy: ‘Buy on dips’ – targeting Rs116.38; stoploss at Rs105.60.