KSE100: Technical Analysis 23-May-2023

May 23, 2023

At the beginning of the new week, the stock market witnessed a negative session as the benchmark KSE-100 index experienced a decline of 404.12 points, closing at 41,195.06. This movement caused the index to fall below its 200-day moving average (41,364) on the daily chart, indicating the potential for further downward moves.

Considering the current chart structure, which suggests weakness, a breach of the immediate support level ranging between 41,090 and 40,996 could lead to additional downside towards 40,930 – 40,857. Subsequently, the index may further decline towards 40,700 – 40,500. On the other hand, any upward movement from the current level would encounter strong resistance between 41,257 and 41,365. Only a significant breakthrough above 41,365 would empower the bulls to continue the rally towards 41,480 – 41,537.

The RSI and the MACD have shown weakness, leading to a cautious stance. We recommend investors to stay cautious on the higher side and wait for. The support and resistance are at 41,004 and 41,538 points, respectively. Failure to hold support will further aggravate the selling pressure towards 40900 and 40600 respectively.

Technical Analysis: Airlink
After a massive sell off AIRLINK managed to find foot hold around 18 and after a healthy consolidation bounced well to currently close at 21.97. Looking ahead, immediate resistance lies around 22.80 and sustaining above which will lead it towards 24.50 and 26.30 respectively. On the downside now support resides at 21-20.40 ( as highlighted on the chart below) which bulls need to sustain to remain on the driving seat.

Technical Analysis: UBL

After an aggressive move stock tested the resistance area around 135 and backed off to close at 118.41. Looking ahead immediate support lies 114-112 which bulls need to sustain, failure doing so will further expose downside towards 105 initially. On the upside immediate resistance lies at 128 and current hard top resides at 132-135 break above which is required by bulls to gain momentum.

Technical Analysis: OGDC

After a massive sell off currently stock is hovering around major support at 77-75 which is the confluence of descending trend line and Potential reversal zone of ABCD pattern and sustaining said area will trigger bounce towards 80 initially which is the immediate resistance area and break above which will lead it towards 83-87 even 89 respectively. On the downside close below 74.50 will be bad omen for buyers.