PSX - Bulls Regain Control: Rebound Sets Stage for 120K (IA)🚀✌
KSE-100 Review:
Last week, I highlighted exhaustion signs after a strong bearish divergence on the KSE-100. As expected, the market showed stabilization and validated the previous technical outlook. On Friday, the index dipped to a low of 113,716, but strong buying emerged from critical support levels, helping the index rebound and close above 115,469 an important wedge support area. This reaction confirms the significance of previously identified technical zones.
Market Sentiments Outlook:
Currently, the KSE-100 has pulled back into a key confluence zone between 114,500–115,000, aligning with trendline support, historical demand and Fibonacci retracement levels. The formation of a Bullish Doji Star near this support further strengthens the case for a potential reversal. As long as the index holds above 114,000, the bullish structure remains intact, with a fresh rally attempt toward 120,000+ likely. However, a decisive breakdown below 114,000 would weaken the bullish momentum.
Economic and Geopolitical Outlook:
Market sentiment is expected to remain cautious due to ongoing geopolitical tensions and national security concerns. While strong corporate earnings and manageable inflation provide some cushion, the uncertainty around Pakistan’s diplomatic response to recent India-related hostilities keeps the market headline-driven. *Sentiment may swing sharply with any escalation or de-escalation news. In the current scenario, investors are advised to stay defensive, enhance liquidity buffers and stick with resilient, fundamentally solid stocks, while actively monitoring global and regional developments.
KSE-100 Review:
Last week, I highlighted exhaustion signs after a strong bearish divergence on the KSE-100. As expected, the market showed stabilization and validated the previous technical outlook. On Friday, the index dipped to a low of 113,716, but strong buying emerged from critical support levels, helping the index rebound and close above 115,469 an important wedge support area. This reaction confirms the significance of previously identified technical zones.
Market Sentiments Outlook:
Currently, the KSE-100 has pulled back into a key confluence zone between 114,500–115,000, aligning with trendline support, historical demand and Fibonacci retracement levels. The formation of a Bullish Doji Star near this support further strengthens the case for a potential reversal. As long as the index holds above 114,000, the bullish structure remains intact, with a fresh rally attempt toward 120,000+ likely. However, a decisive breakdown below 114,000 would weaken the bullish momentum.
Economic and Geopolitical Outlook:
Market sentiment is expected to remain cautious due to ongoing geopolitical tensions and national security concerns. While strong corporate earnings and manageable inflation provide some cushion, the uncertainty around Pakistan’s diplomatic response to recent India-related hostilities keeps the market headline-driven. *Sentiment may swing sharply with any escalation or de-escalation news. In the current scenario, investors are advised to stay defensive, enhance liquidity buffers and stick with resilient, fundamentally solid stocks, while actively monitoring global and regional developments.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.