PSX Technicals Aug 26, 2024

August 26, 2024 (MLN): The benchmark KSE-100 Index closed at 78,801, with the Relative Strength Index (RSI) at 55.30.

The market is expected to remain rangebound until a catalyst emerges, with key support zones at 78,200–78,650 and resistance zones at 79,000–79,500.

The non-directional market structure is clearly evident, with the gap between the upper and lower 20-day Bollinger bands narrowing further by 29.7% to about 2,000pts compared to last week.

The benchmark index closed 0.32% below the upper limit of its Bollinger band and 2.33% above the lower limit.

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

Momentum-wise, 4 of the 100-Index companies' RSI — a 0-100 gauge meter — has climbed above the level of 70 typically seen as overbought, while 4 are below the level of 30 seen as oversold.

Overall technical ratings — a technical analysis tool that combines the ratings of several technical indicators — rate 11 of the 100 index companies as a 'Strong Buy', 35 as 'Buy', 32 as 'Sell', and 8 as 'Strong Sell'.

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.

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