Karachi, August 03, 2012 (PPI-OT): KSE-100: KSE-100: Post breakout consolidation cannot be ruled out

According to KASB Securities Limited,

• The index’s formation serves as an adjustment to the breakout given on Wednesday. Further consolidation cannot be ruled out at this stage as the upper Bollinger Band is likely to create resistance for now.

• The Stochastic Oscillator continues to improve while maintaining its buy signal.

• KASB Securities Limited maintains KASB Securities Limited’s bullish stance.

Analysis and Overview:
The index opened positive however after touching its day’s high, witnessed profit selling to close marginally in the green. Volumes declined by 3% and stood at 102 million. The index’s formation serves as an adjustment to the breakout given on Wednesday. Further consolidation cannot be ruled out at this stage as the upper Bollinger Band is likely to create resistance for now. However the overall trend remains bullish.

The Stochastic Oscillator continues to improve while maintaining its buy signal. Additionally the RSI too maintains its uptrend as well as buy signal.

KASB Securities Limited maintains KASB Securities Limited’s bullish stance.

The first support is at 14,644 points and the second support is at 14,572 points. The first resistance is at 14,798 points and the second resistance is at 14,881 points.