Morning Market Brief 2nd Dec. 2020

The Benchmark KSE100 index have succeeded in penetration above its major resistant region of 41,500pts during last trading session and have given bullish breakout of its daily triangle in upward direction as well. But it's still being capped by a major resistant region at 41,860pts where a weekly double top would try to cap current bullish sentiment in case of breakout above this region index would face its next resistance from resistant trend line of its bullish price channel which fall on 42,100pts, meanwhile if index have to move forward in bullish direction then it needs to take a dip to retest resistant trend line of its previous triangle as supportive one, meanwhile daily stochastic is ready for a bearish pull back and it would also try to add pressure on index. Therefore it's recommended to post trailing stop loss on existing long positions because it's expected that index would try to start the day with a positive spike but later on it would start sliding downward and maybe it would return toward neutral zone till day end. Hourly momentum indicator have generated bearish crossovers and if index would not succeed in penetration above 41,860pts then these would start add pressure on index. On flip side in case of reversal index would initially find support between 41,300pts-41,200pts while breakout below this region would call for 41,000pts and 40,700pts. Overall sentiment would remain bullish until index would not slide below 40,500pts on daily chart but rejection from its double top would convert current bullish breakout into a cheat pattern.