Pakistan Market: Technical Outlook

Pakistan Market: Technical Outlook

Bullish spell continued for the KSE-100 index as it gained 192 points to close at 19,227 with volumes of 136mn shares.

We remain positive and foresee the index to target 19,610, followed by 19,941, a 100% and 123.6% extension of the rally that started in mid Mar’13 and ended in mid Apr’13 (17,388 to 18,791). However, a fall below Friday’s low (19,027) will invalidate the bullish view and the index will target 18,791 (low of Apr 29, 2013). Meanwhile, the RSI and the MACD have continued their rising trend, supporting a bullish view.Investors are recommended to stay ‘long’, with risk defined below 19,027. The support and resistance are at 19,155 and 19,299, respectively.