The northbound journey remained unabated and added another 737.33 points to the score taking, Kse‐100 index to 53,860.36. We remain positive in the near term until a clear price signal emerges to hint initiation of a countertrend move.
Immediate continuation of current bullish run is targeting 53,930 – 54,093 area, with support placed in at 53,255. A break above 54,093 would eye 54,222 – 54,450 points. Immediate support stands in b/w 53,719 – 53,550, while relapse under 53,550 would instil weakness towards 53,400 – 53,255 points.
Considering the momentum indicator, the Stochastic Oscillator and RSI on daily charts is in highly overbought state and need to cool down, hence warranting a cautious approach. Amid an overbought condition, volatility in the market is likely to remain high. Anticipating further upward move in a cautious way, we elevate risk level for the index to 52,900 targeting 53,930 – 54,093 and later 54,222 – 54,450.
Courtesy – AHL Technical