Week successfully closed above 47000+/-300, our indicated critical resistance level. The mid-May to mid-June bullish rally has been very well honored. The bulls are ready to charge with plenty of space but slow on motivation. We may see short-term exhaustion as bulls sit down for a rest before they can begin charging again. All major support and resistance levels are marked on the chart below.
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Sunday, May 30, 2021
KSE100 Week 21-2021: Hoorah over 47K!!
Market capitalization once again crossed over the benchmark 8000 Bn/PKR which has always been a point of cheers and caution at the same time. While the indicators are much more favorable towards a breakout in the long term, we remain conservative in the short term. Money market events that may impact the equities are PIB auctions on 2-Jun, 9-Jun, and MTB auctions on 2-Jun, 16-Jun, and 30-Jun with some, particularly heavy targets. Fears of interest rate hikes have been allayed as the central bank decided to keep it unchanged.
Looking forward, the strategy shall be taking profits on strength and wait for a suitable dip during the early weeks of June. In line with our stance mentioned in the previous post.
For anyone wondering, yes we have made the posting style much more concise and eliminated unnecessary repeats of information typically covered in brokerage bulletins. If you enjoyed reading this update, do let us know in the comments section below.
at May 30, 2021
The bourse has rallied but is demonstrating stubborn pivotal resistance at 48200 +/- 100 - we do not see this as a good omen. It could be th...
Bourse remained unstable throughout as per our expectations and weekly closing failed to break the pivotal resistance at 48200 +/ 100. There...