Karachi, December 11, 2017 (PPI-OT): KSE100 – Long-Term Trend-Line Support in Play
After several failed attempts to break above the key barrier at 40,100 the bears regained momentum, weakened the near-term structure and introduced fresh downside risk which dragged the benchmark KSE 100 Index to the long-term trend-line support as visible on weekly chart. The Index registered a fresh low of 38,431 intraday on Friday, however recovered to settle above 39,000 level.
Moving forward, ability to hold onto this area could push the Index towards the weekly descending resistance at 39,900 while a break above that would target 40,500/ 600 levels but these inclines should be considered as a normal correction which will not abandon the current bearish structure. On downside, a break below 38,600 support would be a sign of further bearish correction to the levels of 37,500 and 37,100 next.