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Thursday, May 9, 2019

May 8, 2019 PSX Technical Analysis.

May 8 - Technical Analysis
KSE100 is expected to get support from 34600 (S2) and take a sharp upwards corrective rally. Advice to cover shorts around this range. 
DOL - Short sell increased by 122.6%
End of gas subsidy will be negative impact on per oxide industry.
Overal, DOL failed to break MA25 an goes back in decline with RSI near floor.
Advice to wait for correction wave before shorting again.
If you are already in short then cover at S2 (16) ATRL - Short sell reduction of 42.6%
Increase in fuel taxes may have negative impact on sales volume of POL products>
RSI floors at 90/- which may lead to corrective wave.
Overall trend to remain downwards.Wait for corrective spike and short again.

HASCOL - 34.46% reduction in short sell and price nearing S1 level which has been its corrective bounce point historically. We must get ready to cover short very soon. Any upwave will be oppurtunity to further short again as overall trend is down.

DGKC - Short sell increase by 25.11%
Cement outlook overall is down.
RSI at floor with price bouncing off from intraday low of 66.0 (S1) today.
Corrective wave is due. Advice to cover shorts and stay sideline.

LUCK - Minor short sell reduction of 2.26%
RSI at floor with price bounce from S1 shows potential for corrective wave.
If fails to hold S1 then S2 is 330.0. Advice to cover short and wait for corrective wave to short again. If market stays bearish then next bottom target is 330. Those wishing to play the corrective wave must keep their sell orders ready in queue.

PSMC - On decline with corrective wave expected at 225-227

HCAR - Expect to drop 151 - 155 for corrective wave to set in.

Expected to drop till 110-117 for corrective wave to set in.

Expect to drop till 50-55 for corrective wave to set in.

Netsol - broke its intraday support and expect to fall 57-60 before and then make a recovery. Those who bought at previous call of 64.0 should hedge in FUT to minimize losses.

Lotchem - classic downtrend with expected support at 14.0 (S1). Same being short covering target.

Unity - Not comments until rights share credit because market situation will not clarify until then.

MLCF, CHCC, PIOC - Nearing S1 level which may create a corrective bounce and new oppurtunity to short. Overall trend is down.

PSO - Hopeless downtrend which has broken S1 and S2. Now next support seems to be S3 near 155-160. Any uptrend will be corrective wave and oppurtunity to short again. As PSO is rumored to declare bankruptcy.

MUGHAL, ISL, CSAP, (Steel Sector)
Due to poor steel sector dynamics stay away from trading in these, only short selling for now.

AVN - RSI at floor and fundamentals have improved YoY. Keep under observation. Recent issue of bonus has take a toll on its price.

BOP - cover short postion near 11 - 11.50

FFL - is going towards complete death and expected to hit 16 for corrective wave. If fails to show correction then next support will be 11 - 12 .

PAEL - showe some bounce on charts but short sell wave has set in again. Increase of 252% in short sell volume DoD basis. Expected support and short covering target is 20.0.
Failing to hold will see next support at 18 or lower.

SEARL - total crash. May show some support from 150. There is no respite in short sell with DoD volume increasing by 22.22%

GATM - May be the next crash story as it shows heavy short sell opening today. Charts point to bearish direction already. Too early to say much about this as it moves in very narrow price range.

EPCL - Strog downtrend with short sell volume increase by 96.08% DoD basis.
Expected support around 26. Breaking which may see further downside.

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