Karachi, May 15, 2018 (PPI-OT): KSE-100 dropped below 200-DMA; ‘Sell on Strength’
Bears continued to dominate the session as the KSE-100 index lost 1,096 points to close at 42,499. Volumes stood high at 176mn shares as compared to 165mn shares traded previously. The index has currently dropped below the 200-DMA that will now restrict upside at 42,794. However, a fall below yesterday’s low will extend the decline towards 41,225, with a chance of later extending towards 40,214. Meanwhile, the RSI and the MACD have continued to decline, supporting a negative view. Investors are recommended to view any upside as an opportunity to ‘Sell’, keeping stoploss above the 200-DMA. The support and resistance are at 42,118 and 42,883, respectively.
ENGRO – Downside likely
Strategy: ‘Sell on Strength’ – targeting Rs280.72; stoploss at Rs306.79.
DGKC – Slide to continue
Strategy: ‘Sell on Strength’ – targeting Rs119.91; stoploss at Rs135.99.