Elixir Securities Limited -Elixir Grid

Karachi, June 19, 2018 (PPI-OT): KSE100 – Ascending Channel Support in Play

The benchmark KSE 100 Index was making a correction of its recent uptrend but the pullback has drawn support at the ascending channel line at 43,142 level followed by a recovery towards 43,680 mark. Fibonacci shows that this area nearly coincides with 50% Fib of 41,872/ 44,333 descend, adding more to its strength as a potential floor. The recent consolidation has also alleviated the overbought condition of momentum indicators on daily time frame, perhaps a sign that the bulls are simply catching their breath before taking the Index on another run higher.

The weekly studies of these oscillators reveal that, stochastic and RSI are on the move up, indicating that bullish pressure is still in play. This implies a break of nearby resistance at 43,738 (50% Fib of 44,333/43,142 descend) would be a sign of continuation of a bullish spell towards 44,333 (former high) and 44,663 (61.8% Fib extension of 41,872 to 44,333 from 43,142) next. Further up, if seen, the ascending channel resistance comes around 44,770 level which will likely limit the upside in the first attempt.

On the flipside, If the nearby resistances at 43,738/832 keep the gains in check, the Index could head back towards 43,480 level while a break would turn attention to 43,142/100 levels again. Considering the overall position of momentum indicators on daily and weekly time frames we still maintain positive stance and expect the Index to hold above its aforesaid correction levels. However a continued drop below 43,100 on elevated volumes could bring in lengthier consolidations with 42,540 and 41,814 levels insight.

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Elixir Securities Limited -Elixir Grid

Karachi, June 19, 2018 (PPI-OT): KSE100 – Ascending Channel Support in Play

The benchmark KSE 100 Index was making a correction of its recent uptrend but the pullback has drawn support at the ascending channel line at 43,142 level followed by a recovery towards 43,680 mark. Fibonacci shows that this area nearly coincides with 50% Fib of 41,872/ 44,333 descend, adding more to its strength as a potential floor. The recent consolidation has also alleviated the overbought condition of momentum indicators on daily time frame, perhaps a sign that the bulls are simply catching their breath before taking the Index on another run higher.

The weekly studies of these oscillators reveal that, stochastic and RSI are on the move up, indicating that bullish pressure is still in play. This implies a break of nearby resistance at 43,738 (50% Fib of 44,333/43,142 descend) would be a sign of continuation of a bullish spell towards 44,333 (former high) and 44,663 (61.8% Fib extension of 41,872 to 44,333 from 43,142) next. Further up, if seen, the ascending channel resistance comes around 44,770 level which will likely limit the upside in the first attempt.

On the flipside, If the nearby resistances at 43,738/832 keep the gains in check, the Index could head back towards 43,480 level while a break would turn attention to 43,142/100 levels again. Considering the overall position of momentum indicators on daily and weekly time frames we still maintain positive stance and expect the Index to hold above its aforesaid correction levels. However a continued drop below 43,100 on elevated volumes could bring in lengthier consolidations with 42,540 and 41,814 levels insight.

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Elixir Securities Limited -Elixir Grid

Karachi, June 19, 2018 (PPI-OT): KSE100 – Ascending Channel Support in Play

The benchmark KSE 100 Index was making a correction of its recent uptrend but the pullback has drawn support at the ascending channel line at 43,142 level followed by a recovery towards 43,680 mark. Fibonacci shows that this area nearly coincides with 50% Fib of 41,872/ 44,333 descend, adding more to its strength as a potential floor. The recent consolidation has also alleviated the overbought condition of momentum indicators on daily time frame, perhaps a sign that the bulls are simply catching their breath before taking the Index on another run higher.

The weekly studies of these oscillators reveal that, stochastic and RSI are on the move up, indicating that bullish pressure is still in play. This implies a break of nearby resistance at 43,738 (50% Fib of 44,333/43,142 descend) would be a sign of continuation of a bullish spell towards 44,333 (former high) and 44,663 (61.8% Fib extension of 41,872 to 44,333 from 43,142) next. Further up, if seen, the ascending channel resistance comes around 44,770 level which will likely limit the upside in the first attempt.

On the flipside, If the nearby resistances at 43,738/832 keep the gains in check, the Index could head back towards 43,480 level while a break would turn attention to 43,142/100 levels again. Considering the overall position of momentum indicators on daily and weekly time frames we still maintain positive stance and expect the Index to hold above its aforesaid correction levels. However a continued drop below 43,100 on elevated volumes could bring in lengthier consolidations with 42,540 and 41,814 levels insight.

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