Karachi, June 11, 2018 (PPI-OT): KSE100: Finding Resistance at 50% Fib Levels
The benchmark KSE 100 Index exploded higher last week but it seems to be stalling at 50% Fib resistance or 44,300 level (50% Fib of 47,148/ 41,453 larger descend). Momentum indicators, stochastic and RSI, on daily time interval are also pointing down from overbought region, perhaps indicating that the corrective leg could prolong if the Index breaks below 43,890/750 supports in days ahead.
On a bigger picture, as the chart shows, the Index is still pivoting above an ascending line thus indicating that the medium-term trend is still positive and any decline should be treated as an interim correction and opportunity for those looking to buy and join the uptrend at a better level. In case of any downside, the Index would aim for the trend-line support at 43,570 level while a break would turn attention to 43,393 level (38.2% Fib of 41,872/ 44,333 ascend).
On the flip side, if supports at 43,890/ 750 keep the losses in check the Index could climb to 44,300/400 levels again. Sustained progression above this area would unlock further upside to the levels of 45,000 and 45,500 next.