Elixir Securities Limited -Elixir Grid
Karachi, January 08, 2018 (PPI-OT): Habib Bank Limited: Steady Upward Progression!
HBL has been on a strong climb recently, barely offering any chance to hop after breaking above the horizontal resistance at 173.30 convincingly. Moving forward, the medium-term outlook stays positive while the overbought readings of momentum indicators on daily time frame suggest that the sellers could hop in the down-trend from 191/ 193.50 levels causing interim retracement to 183/181 support levels. In case of a deeper pull-back we might see the price action retreating to 178 level, hence providing an opportunity for those looking to buy and join the uptrend at a better price. On upside, a break past 193.50 resistance would open further upside to the levels of 208/ 210.
Pak Elektron: Potential Cup and Handle Breakout
PAEL seems to have a bullish momentum on its side as the price action is beginning to respect the ascending-line support as visible on its daily time frame. The daily chart also illustrates that PAEL has been in a short-term “Cup and Handle” formation from December 7th to 28th of preceding year. The handle of the pattern is in progress with price action finding support at 46.25 level. At this point, the neckline of this pattern is placed at 52.10 which has been broken marginally on Friday’s closing. Moving ahead, sustained progression above this area would indicate a successful cup and handle breakout which is considered as a continuation signal. In that case, we have to look for extended target i.e. 56.25/ 57 in the first attempt.
In case of further rise, fresh bulls could take price higher towards the 100% breakout target at 62. This area also coincides with 161.8% Fibonacci extension level (161.8% Fibonacci extension of 42.15 to 52.35 from 46.25) adding more to its strength as a potential resistance.
Sui Southern Gas Company: Stuck in a Range
SSGC is engaged in a sideways activity after advancing more than 34% from a low of 24.30 in last month. At this point, the ability to hold above the short-term averages at 30.25 still maintains a bullish bias on daily charts as the price could be consolidating before resuming its climb. Resumptions of bulls however demand a break above the range resistance at 32.70. Sustained progression above this area would unlock further upside to the levels of 39.12 (100% Fibonacci extension of 24.30 to 32.66 from 30.76) and 44.28 (161.8% Fibonacci extension of 24.30 to 32.66 from 30.76) next. Conversely, a break below 30.25 support would dampen any bullish view in short-term and open doors for a move lower towards 28.50/ 27.50 supports.