Karachi, September 25, 2018 (PPI-OT): An Engulfing Bear; stay cautious
The KSE-100 index closed the session lower at 41,005, down 316 points. Volumes stood at 99mn shares versus 159mn shares traded previously. The current formation is an Engulfing Bear which indicates a negative trend ahead. Moreover, the 50-DMA is looming ahead which may restrict upside at 41,554. Meanwhile, a fall below 40,899 (yesterday’s low) will confirm the bearish view with 40,255 and 39,767 in sight. The RSI has shown weakness, while the Stochastic Oscillator is rising, signalling no clear trading view. JS Securities Limited recommends investors to stay cautious at current levels. The support and resistance are at 40,667 and 41,345, respectively.
ENGRO – Downside likely
Strategy: ‘Sell on Strength’ – targeting Rs305.96; stoploss at Rs319.90.
ABL – Slide to continue
Strategy: ‘Sell on Strength’ – targeting Rs95.87; stoploss at Rs103.85.