Gyrating Along The Resistance line: Short‐Term: Market continues to gyrate along the resistance line (red) for the fourth straight session with the daily STS entering overbought readings. A relapse towards 29,558 would confirm an immediate restriction for weakness towards 29,405 and 29,157 levels. On the upside, a break above 29,805 is required to challenge July’14 high of 29,940 level. Sell up to 29,729 with risk above 29,805 level / Weak buy above 29,805 with risk below 29,603 level. General Outlook: After teetering on an edge amid weekly and monthly overbought readings, benchmark KSE retreated towards the intermediate channel support (dotted), placed at 29,167 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. This puts near-term restriction at 29,678 — 29,940 levels where a relapse below 28,570 level would expose weakness towards 27,724 — 27,697 levels, which can extend further towards the primary channel support at 27,059 level. Need a sustained break above 29,940 level to bring back the bullish sentiment for minor continuation towards 30,422 level. 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: SHFA, SHEZ, THALL, INDU, LPCL, PSMC, HUBC, ICI, PKGS & OGDC 13-day Laggards: EFUL, PTC, PAKT, SHEL, PACE, JVDC, COLG, AGL, ENGRO & PSEL
Posted on: Mon, 07 Jul 2014 03:54:37 +0000
Trending Topics
Recently Viewed Topics
© 2015