JS Global Capital Limited – Pakistan Market: Technical Outlook

Karachi, September 01, 2016 (PPI-OT): KSE-100 to test support at the 30 DMA; stay cautious

The KSE-100 index showed negative movement to close at 39,810, a loss of 182 points. Volumes stood low at 351mn shares versus 424mn shares traded previously. The index is expected to test support at the 30-DMA standing at 39,638; where a fall below will kick off the corrective trend with 39,149 as the next target. However, any upside will revisit yesterday’s high; where a break above will continue the uptrend with 40,214 and 40,581 in sight. Meanwhile, the RSI and the Stochastic Oscillator have taken a downturn, suggesting a negative trend ahead. JS Global Capital Limited recommends investors to ‘Sell’ below the 30-DMA. The support and resistance are at 39,695 and 39,924, respectively.