PSX Technicals Aug 05, 2024

August 05, 2024 (MLN): The benchmark KSE-100 Index closed at 78,226, with the Relative Strength Index (RSI) at 48.16.

The market has shifted its momentum, with bears now in control based on technical indicators.

Pivot Points — a technical indicator used to determine areas of support and resistance through mathematical formulas — indicate a possible resistance for KSE-100 around 78,465.

Meanwhile, it suggests an initial support at 77,957, with further cushions at 77,688 and 77,449.

KSE-100 Index closed 4.29% below the upper limit of its 20-day Bollinger band and 1.33% above the lower limit.

The gap between the upper and lower Bollinger of KSE-100 Index has widened by 14.5% compared to last week.

The Bollinger study is a way of analyzing volatility, calculated by plotting standard deviations, above and below a security over time. The bands widen when a security's price becomes more volatile and narrow when it is more stable.

Momentum-wise, only 2 of the 100-Index companies' RSI — a 0-100 gauge meter — has fallen below the level of 30 typically seen as oversold.

Furthermore, overall technical ratings — a technical analysis tool that combines the ratings of several technical indicators — rate 45 of the 100 index companies as a 'Sell', and only 26 as 'Buy'.

Note: Table includes KSE-30 companies only

To note, the overall rating of the indicator includes several moving averages with different lengths, the Ichimoku Cloud, and several oscillators.

Disclaimer: The views and analysis in this article are the opinions of the author and are for informational purposes only. It is not intended to be financial or investment advice and should not be the basis for making financial decisions.

Copyright Mettis Link News