Short-Term:
In line with a weakening
theme, benchmark Karachi Stock Exchange (KSE) slid 1.73
% yesterday to violate the 55-day
average (22,647) which it had been sustaining
since Jan’13. Expect further pressure towards 22,260
and 21,800 levels, with immediate resistance within
22,760 — 22,856 seen blocking any recovery attempt. Sell
on strength!
General View:
Easing
weekly momentum data coupled with a double-top
pattern precursor’s intermediate correction ahead. This can
potentially drag (wave 4) the index down towards 20,924
— 19,057 levels where the index would
enter the 38.2% to 61.8% retrenchment zone of Jan’13
to July ’13 rally. However, such correction will not reverse the course of primary
bull trend,
keeping the long-term trajectory intact for 25,000
and 27,270 — 29,039 levels. Investors should
keep enough buying power to capitalize at such
correction. We noticed strong potential in ENGRO, PSO, PTC,
SNGP, NRL, EPCL, FABL and BOP.
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