Morning Market Brief 15th Oct. 2021

The Benchmark KSE100 index have bound back after getting support from a descending trend line during last trading session and a bullish engulfing pattern on daily chart have take place along with a daily double bottom. As of now it's expected that index would try to open with a positive gap as it exactly closed below a previous supportive trend line which would now try to react as a resistant one therefore a gap opening would favor bulls to maintain current bullish sentiment intact. For current trading session index would try to target 44,600pts initially where its being capped by horizontal resistant region and breakout above this region would not only confirm bullish engulfing pattern but also would open doors for 44,780pts and 45,065pts regions. While on flip side in case of rejection from its resistant regions index may slide towards 43,950pts and 43,760pts where its being supported by strong horizontal supportive regions. It's recommended to stay cautious as long as index is trading below 45,500pts and its recommended to post trailing stop losses on existing long positions because current pull back would be considered correction of last bearish rally on daily chart until index would not succeed in closing above 45,500pts. Currently hourly stochastic is ready for a bearish crossover but MACD is still in positive mode therefore any dip could be buying opportunity with strict stop loss of previous low.

Petroleum prices likely to be raised by up to Rs9