Morning Market Brief 17th Dec. 2020

The Benchmark KSE100 index has faced rejection from resistant trend line of its bullish price channel in last days and have tried to continue its bullish sentiment during last trading session. As of now it's expected that index would try to bounce back in bullish direction during current trading session therefore buying on dip would be beneficial in case index would take a dip at start of the session. It's expected that index would try to target its resistant trend line once again during current trading session and a bullish rally could be witnessed during the day. For day trading it's recommended to start buying start of the day and off load these positions around 43,700pts before day end, it's recommended to stay cautious until index would not succeed in closing above 44,200pts on daily chart. Closing above 43,700pts on daily chart would open doors for 44,200pts and 44,660pts or 45,000pts in coming days where expansion of breakout of its previous triangle would complete. For current trading session index have supportive regions ahead at 43,000pts which would be followed by 42,860pts and index would remain bullish until it would not succeed in penetration below 42,500pts. Daily momentum indicators have entered into an uncertain region, mean while index is standing at a crucial level on monthly and weekly charts therefore it's recommended to stay cautious and post trailing stop loss on existing long positions. on weekly chart index is trying to complete a cup and handle formation which is a continuity pattern for previous bullish rally but it depends on this week's closing that either index would continue its bullish sentiment or a correction would be witnessed. On longer run index would be considered bullish until it would not succeed in closing below 41,500pts or 41,000pts.