Morning Market Brief 18th Oct. 2021

The Benchmark KSE100 index have given confirmation of its daily bullish engulfing pattern and succeeded in closing above its initial resistant region of 44,500pts during last trading session. As of now it needs to stay cautious because index is going to complete 50% correction of its last bearish rally on daily chart therefore it's expected that it may face strong resistance around 45,230pts region. On intraday basis it's expected that index would face initial resistance between 44,980pts-45,090pts region where its being capped by a descending trend line along with a horizontal resistant region, meanwhile breakout above this region would call for 45,230pts and 43,330pts. Hourly stochastic is losing strength therefore it's expected that index may take a dip on intraday basis therefore it's recommended to stay cautious and post trailing stop loss on existing long positions. In case of rejection from its resistant regions index would start sliding downward 44,500pts would try to provide initial support but hourly closing below this region would push index into bearish zone. Meanwhile a strong resistant trend line on weekly chart would also try to push index into bearish zone before 45,230pts.

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