Morning Market Brief 11th Dec. 2020

The Benchmark KSE100 index is inching up since last three trading session and overall a volatile situation was witnessed during this week in which index have moved in a seesaw wave. As of now it’s expected that index would face some pressure initially after facing rejection from 42,500pts as hourly momentum indicators are strongly bearish and these would try to push index towards 42,000pts, for current trading session index have supportive regions around 42,000pts and 41,800pts while on flip side it would face initial resistance between 42,500pts-42,600pts and breakout above this region would call for 42,860pts-43,000pts. Index is moving beside resistance trend line of its bullish price channel and a correction is due on hourly and daily chart therefore an intraday dip could be witnessed therefore selling on strength would be beneficial for day trading. On short-term basis index would remain range bound between 41,500pts-43,000pts and sentiment would remain bullish until index would not succeed in sliding below 41,500pts, while today’s closing below 42,500pts would increase uncertainty among investors by formatting a spinning top on weekly chart after a long bullish candle which would open doors for a weekly evening shooting star in next week therefore it’s recommended to avoid initiating new long positions until index would not succeed in closing above 42,800pts on daily or weekly charts. Meanwhile retesting of resistant trend line of its previous triangle is still remaining which would attract investors for new buying on dip therefore a dip in coming days would be considered healthy for market sentiment.