Karachi, September 13, 2018 (PPI-OT): An Engulfing Bear – look for reversal
The KSE-100 index posted a loss of 237 points to close at 40,522. Volumes stood at 137mn shares as compared to 140mn shares traded previously. An Engulfing Bear has occurred, which in a downtrend indicates a bullish reversal, though requires a confirmation. Meanwhile, a fall below yesterday’s low will continue the downtrend with 39,554 in sight. However, any upside will find resistance at 40,824; where a break above will confirm the bullish view. Moreover, the Stochastic Oscillator has generated a Buy signal, supporting a recovery view. JS Securities Limited recommends investors to stop selling above 40,824. The support and resistance are at 40,319 and 40,726, respectively.
NML – Moving averages to restrict downside
Strategy: ‘Buy on dips’ – targeting Rs148.68; stoploss at Rs136.13.
ENGRO – Slide to continue
Strategy: ‘Sell on Strength’ – targeting Rs304.32; stoploss at Rs319.00.