KSE-100: Big bearish candle witnessedMarket Brief:
KSE-100 Index declined by 0.72% or 590 points to close at 81,658 points. Intra-day the index reached a peak of 82,906 and a low of 81,553. Volumes decreased by 2% compared to the previous trading session. The index is currently trading above the 50-day SMA level of 78,990.
The main index opened with a positive gap of 504 points and declined throughout the day, losing nearly 1,100 points net. KSE-100 is currently 14.79% above its 200-day moving average and is an uptrend. RSI is declining after reaching an overbought level and currently, the reading is at 65.26.
Recommendation:
The index will likely find initial support around 81,172. If this level is breached the index could drop further to the 80,686 – 79,819 range. On the upside, KSE-100 is expected to encounter initial resistance near 82,525 points with a breakthrough leading to the 83,392 – 83,878 range.
