Elixir Securities Limited -Elixir Grid

Karachi, February 06, 2018 (PPI-OT): KSE100 – 44,000 Emerging as a Key Support

The benchmark KSE 100 Index resumed its climb after testing 44,000 dynamic support in the outgoing week, however applying Fib tool to the latest swing of high and low reveals that the price action might be stalling at 38.2% Fib resistance or 44,567 level (38.2% Fib of 45,496/ 43,993 descend). If this area keeps the gains in check the Index could head back lower and challenge the 44,000 support again while a break of this psychological barrier could unlock further downside to the levels of 43,578 (21 EMA) and 43,100/000 next. This area coincides with the long-term moving average supports (weekly 55 EMA and daily 233 EMA) adding more to its strength as a floor.

Conversely, If the resistance at 44,567/ 638 gives way, then there is further overhead resistance seen till 44,744 (50% Fib of 45,496/ 43,933 descend). Ability to hold onto this would eventually lead to a revisit to former high at 45,500 however a sustained progression above this area would put the Index on a stronger climb towards 47,000/ 200 levels.

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