Karachi, November 06, 2019 (PPI-OT): KSE-100; Consolidation expected at the 200-DMA
The KSE-100 index closed the session higher at 35,358, a gain of 81 points. Volumes stood high at 308mn shares versus 208mn shares traded previously. The index is likely to test support at the 200-DMA where a fall below will kick off the corrective trend. However, a break above yesterday’s high of 35,609 will continue the uptrend with 35,771 and 36,434 as the next targets. Meanwhile, the current formation is of a Spinning Top which indicates consolidation at current levels. Moreover, the RSI and the Stochastic Oscillator are overbought hinting a limited upside. A cautious approach is required at current levels. The support and resistance are at 35,145 and 35,573, respectively.
APL: Corrective trend remains intact
Strategy: ‘Sell on Strength’ – targeting Rs292.37; stoploss at Rs303.75.
MCB: Upside to continue
Strategy: ‘Buy on dips’ – targeting Rs213.00; stoploss at Rs182.50.