First of all, we wish a very happy Eid Al-Adha 2020 to all our fans and followers. There is no week 31-2020 mid-update due to the trading week being shorter by a day.
Following up from our previous update, we had expected strong support at 36900 +/- 300 whereas the index has shown a firm reversal from its pivot of 37600 +/- 100 and broke above its first resistance of 38300 +/- 300 successfully. This signifies the strength of bulls along with their impatience and could lead to a harder than expected correction at the market top. Since impatient rallies tend to cause an impatient sell off too. Bears ended up in a trap for time being and got trampled by the bulls brutally! Many were seen counting their losses and vowing not to take short positions again!
Looking forward, we do expect the index to make a double top at the pre-COVID19 levels but not without some see-saw behavior due to the presence of two known resistance in between.
DoD market capitalization has stood higher than the previous week's average for the entire trading week, with a weekly average gain of +123.94 Billion/PKR. This signifies strong buying interest into the bourse and index is not likely to high saturation point before crossing the 8000 Billion/PKR barrier.
Jazaka Allah Khair....ReplyDelete