Morning Market Brief 21st Jan. 2021

The Benchmark KSE100 index have succeeded in maintaining inside its ascending price channel during last trading session on daily chart but today it would open below supportive trend line of this channel therefore some serious pressure could be witnessed with start of the day but later on a recovery could be witnessed if index would succeed in establish ground above 45,500pts or 45,350pts. While on hourly chart index have formatted a bearish price channel inside its daily ascending channel and had continued its bearish journey during last trading session but still succeed in maintaining above major supportive region of 45,500pts which is a positive gesture for bulls because index would be considered bullish until it would not succeed in closing below 45,500pts or 45,200pts on daily chart. As of now it's expected that index would try to establish ground above 45,500pts initially while breakout below that region would call for 45,350pts and 45,200pts, hourly closing below 45,350pts would penetrate its bullish price channel in downward direction which would pump fresh selling volumes in market and index would lose its bullish momentum. It's recommended to stay cautious and post strict stop loss of 45,200pts on existing long positions while on bearish breakout of this region it's recommended to adopt cut and reverse strategy, because if index would succeed in penetration below that region then a sharp dip of further 500-700pts could be witnessed. For current trading session it's recommended to stay on buying side on dip with strict stop loss of 45,200pts because index could start intraday reversal after a dip. While on flip side index would face initial resistance at 45,850pts which would be followed by 45,980pts where it's being capped by a resistant trend line of its descending trend channel along with a horizontal resistant region respectively. While breakout above these regions would push index further upward in coming day towards 46,150pts and 46,350pts.