Morning Market Brief 3rd jun 2021

The Benchmark KSE100 index had faced rejection from crossover of a resistant trend line and horizontal resistant region during last trading session. As of now it's expected that index would face major resistance again from same region and index would try to create a daily double top below this region. It's expected that index would try to retest its resistant region during current trading session as well. Meanwhile index have given bullish breakout of its ascending wedge on hourly chart therefore now it would try to establish ground above resistant trend line of that wedge and a bullish pull back would be witnessed after a dip if index would succeed in maintaining above this line. For current trading session it's recommended to cautious and post trailing stop loss on existing long positions as index seems to target 48,400pts for retesting purpose and if it would succeed in closing above this region then it would extend its gains in coming days towards 48,760pts. While on flip side in case of rejection from its resistant regions push index towards a slight correction but overall sentiment would remain bullish until index is trading above 47,200pts. Hourly momentum indicators have changed their direction towards bearish side and these would try to push index for an intraday correction but this correction could be an opportunity to initiate new positions for short term trading with strict stop loss of 47,400pts.

 

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