Search This Blog

Thursday, April 2, 2020

Spectacular Breakout Amid COVID-19 Skepticism

Although it's not usual for us to make an update today, unusual circumstances call for an unusual update.

KSE-100 performed a spectacular comeback breaking our benchmark of 30100 +/-100 ( link ) and sustaining a close above it by a wide margin.

Market capitalization is up by +206.47 billion PKR intraday which beats the Mar-31 record of +190.21. Highest ever gain recorded in a single week during the COVID-19 crisis. It is hard to ignore market breakouts with spectacular capitalization gains.

Another interesting pattern to note on a wider time frame is that 28600 +/-100 has emerged as an area that can defend itself. Despite our skepticism fueled by COVID-19 related negativity and worldwide market meltdown, a break down below this area did not survive for too long. Refer to the previous post made on Mar-28  ( here ) for better understanding.

Looking forward, we hold a cautious view of the market and advise prompt profit-taking. Economic situation and decision making amid the COVID-19 crisis remain vague and volatile. Dips will be an opportunity to accumulate but patience shall be exercised to get support confirmation before proceeding. 

Happy trading! 😀

No comments:

Post a Comment