Morning Market Brief 10th Feb. 2021

The Benchmark KSE100 index is moving in a bullish price channel on hourly chart but have faced rejection from a strong horizontal resistant region during last three trading sessions, which pushed it downward for a slight correction. As of now index is trying to establish ground above supportive trend line of its bullish price channel its also being supported by a strong horizontal supportive region at same level therefore it's expected that index would try to continue its bullish journey during current trading session but if index would succeed in sliding below this line then a sharp bearish rally would be witnessed. Meanwhile hourly stochastic have changed its direction towards bearish side which indicates that index would remain under pressure today therefore it's recommended to adopt swing trading with side with strict stop loss. Currently it's expected that index would initially try to target 46,900pts and breakout above that region would call for 47,350pts and 47,500pts but it's recommended to trade step by step after breakout of each resistant region it could be beneficial to target next one with strict stop loss. While on flip side index would try establish ground above its major supportive region of 46,700pts and 46,500pts. Oil & Gas exploration sector would try to lead today's bullish rally because international oil prices are inching up and it's expected that WTI would continue moving towards 60$/bbl where it's being capped by a strong resistant trend line on monthly chart. In case of breakout above 47,500pts-47,660pts index would start moving towards 100% expansion of its last bullish rally which falls at 48,400pts but it's recommended to stay cautious and post trailing stop loss on existing long positions because once index would start a corrective rally then it would not provide chance to take a safe exit to day traders and short term investors.