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Wednesday, February 12, 2020
Week 07-2020 Mid Week Update
Index took a leap from lower band of predicted support range ( link here ) and posted strong recovery inline with our expectation. Major event today was SBP MTB auction ( link here ) but against the tradition, market remained strong in second half giving a confirmation signal to attractiveness of investing in PSX.
DoD basis, market cap has continued to rise since week opening, signaling the return of bulls to the index. The real impact will be observing positive week closing.
Looking forward, intraday resistance falls in the range of 40600-40900 +/- 100 points while index will face interim resistance at 41650-41900 +/- 100 points which may coincide with FEB-MAR roll over period. While this can be a frustrating sideways experience, it will also be an opportunity to sell on strength and accumulate on dip for smart investor.
However, a swift break above interim resistance is required for bullish rally to continue. A frustrating previous experience was observed in Q4-2019 when index got painfully stuck in the range of 40900 +/- 100 ( link here ) We hope it will not be a repeat of same. We predict market channel top to fall in the range of 43800-44300-44800 +/- 100 points.