Morning Market Brief 18th Dec. 2020

The Benchmark KSE100 is moving in a bullish price channel on daily chart and had succeeded in closing above its major resistant region of 43,000pts during this week, mean while it had succeeded in penetration above its secondary resistant region of 43,700pts during last trading session. As of now hourly and daily momentum indicators are exhausting and a slight correction would be healthier to strengthen current bullish momentum. Overall sentiment have been changed towards bullish side but uncertainty would prevail until index would not succeed in closing above 44,200pts and closing above 44,200pts would call for 45,000pts and 45,500pts. But it's recommended to stay cautious because 61.8% of its last bullish correction would complete at 44,750pts therefore index remain in uncertain zone until it would not succeed in closing above this region, meanwhile there are still chances that index could start correction of its recent bullish rally anytime therefore it's recommended to post trailing stop loss on existing long positions and prefer day trading instead of short or mid-term until index could not normalize its bullish sentiment. While on flipside index have supportive region at 43,250pts and 42,800pts where strong horizontal supportive regions would try to support index against selling pressure.