Karachi, March 14, 2013 (PPI-OT): Corrective Profile
Short- Term View: The benchmark KSE encountered resistance around the 50% retracement of 18312 to 17491 descend at 17902 yesterday.
According to AKD Securities today, the index can recede back to minute supports around 17633 and 17579. In case of a break above 17902 17930 the index would complete the 61.8% retracement at 17999 level. AKD Securities maintains a corrective stance on the index, sighting possibility for deeper correction towards the 38.2% and 50% retracements of last rally (16036 to 18312) at 17442 and 17174 respectively containing the 55- DMA (17283). It’s too early to say that the downwards corrective phase is over. Therefore, it is advised to reduce exposure on strength up to 18000 level. A closing break of 18185 will mitigate the corrective theme.
Intermediate View: On the weight of the evidence, the bullish peak and trough progression remains intact above Jan’13 low of 16036 level. However, in absence of a clear basing structure at weekly overbought momentum, AKD Securities maintains a neutral stance focusing on the short- term trades only.