Pullback Within A Downwards Corrective Theme: Short‐Term: Bounce from an intermediate channel support is expected to remain limited up to 29,247 — 29,410 levels, clustered with minor averages. A break below 28,881 — 28,815 levels would expose weakness towards 28,554 level. Daily momentum indicators (MACD & RSI) remain in a corrective mode despite minute relief from oversold readings. Sell on strength up to 29,247 — 29,410 levels. General Outlook: After teetering on an edge amid weekly and monthly overbought readings, benchmark KSE has retreated towards the intermediate channel support (dotted), placed at 28,769 level this week —threatening to terminate the fifth Elliot wave (marked as v of 5) of bullish impulse started from Oct’13 low of 21,476 level. Relapse below 28,570 level would expose pressure towards 27,724 — 27,697 levels, which can extend further towards the primary channel support at 26,630 level. Need a sustained break above 29,940 level to bring back the bullish sentiment. Considering the index’s position in final stages (high risk) of wave v of 5, investors are advised to avoid committing aggressive long positions and focus on short-term trades only. Preferred plays include ENGRO, PTC, AICL, SNGP, PAEL, NRL, EPCL, AKBL, FABL and BOP. 13-day Leaders: GRAYS, PSMC, SHFA, INDU, COLG, SHEZ, PAKT, MARI, KOHC & HUMNL 13-day Laggards: SHEL, PTC, EFUL, PKGS, GHGL, AGL, TPL, NATF, ICI & MUREB
Posted on: Thu, 26 Jun 2014 03:55:28 +0000
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