JS Securities Limited – Pakistan Market: Technical Outlook (09-12-2019)

Karachi, December 09, 2019 (PPI-OT): Doji Star formation; Trend reversal expected

The KSE-100 index failed to sustain its intraday high of 40,988 and slid to close at 40,732, up 91 points. Volumes stood at 417mn shares versus 508mn shares traded previously. A Doji Star has occurred, which in an uptrend indicates a bearish reversal; however, a confirmation is required. Meanwhile, the index is likely to revisit Friday’s high where a break above will continue the uptrend with 41,617 in sight. However, a fall below 40,596 (Friday’s low) will kick off the corrective trend with 39,447 as the downside target. The RSI and the Stochastic Oscillator are overbought, warranting a cautious approach. JS Securities Limited recommends investors to stay cautious on the higher side. The support and resistance are at 40,504 and 40,962, respectively.

FFC: Correction to continue

Strategy: ‘Sell on Strength’ – targeting Rs99.61 and Rs97.63; stoploss at Rs106.00.

UBL: Corrective trend ahead

Strategy: ‘Sell on Strength’ – targeting Rs165.77 and Rs158.23; stoploss at Rs173.90.

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