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Monday, November 18, 2019

Ting Tong: PSX is now flying at 38,411 Point high!

With reference to our post on 17 Nov, market did break the 38K barrier with over heated indicators. Looking forward, if index continue to rise without taking due correction, then 38K - 40K will remain overheated territory where sensible risk management is necessary.  Continue to hold long positions and play it safe by exchanging saturated items with those still early in the trend.

Expected behavior of the market:

  • It will continue an over-heated trend until its next resistance of 40K where correction will be observed.

  • Market will take a sudden reversal randomly above 38K to make a correction. 

Overall, market move today warns of an impeding storm as it deviated from its expected healthy trend to hit the speculative line and speculative markets do not last long. Keeping trailing profit taking stops will provide maximum gains and protect from sudden market reversal. We expect correction period to coincide with FUT-NOV roll over period. 

We wish you a very happy very profitable trading!

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