PSX Technicals Jul 22, 2024

July 22, 2024 (MLN): The benchmark KSE-100 Index closed at 80,118, cooling off the Relative Strength Index (RSI) to 59.73.

Pivot Points — a technical indicator used to determine areas of support and resistance through mathematical formulas — indicate a possible cushion for KSE-100 around 79,307.

Meanwhile, it suggests an initial resistance level at 81,434, with further barriers at 82,751 and 83,561.

KSE-100 Index closed 1.95% below the upper limit of its 20-day Bollinger band and 3.36% above the lower limit.

The gap between the upper and lower Bollinger of KSE-100 Index has narrowed significantly by 42.1% 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 6 of the 100-Index companies' RSI — a 0-100 gauge meter — has climbed above the level of 70 typically seen as overbought.

Furthermore, overall technical ratings — a technical analysis tool that combines the ratings of several technical indicators — rate 6 of the 100 index companies as a 'Strong Buy', 44 as 'Buy', 22 as 'Sell', and 14 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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