PSX Technicals Jun 24, 2024

June 24, 2024 (MLN): The benchmark KSE-100 Index closed at 78,810, with the Relative Strength Index (RSI) at 72.98.

Pivot Points — a technical indicator used to determine areas of support and resistance through mathematical formulas — indicate a possible cushion for KSE-100 around 77,966.

Meanwhile, it suggests a resistance level at 79,857.

KSE-100 Index closed 0.50% above the upper limit of its 20-day Bollinger band and 9.55% above the lower limit.

The gap between the upper and lower Bollinger of KSE-100 Index has widened by 49.1% compared to last week, suggesting increased volatility.

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 14 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 12 of the 100 index companies as a 'Strong Buy', 57 as 'Buy', 18 as 'Sell', and only 1 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.

Pakistan stock market has rallied 90.1% and is also the best performer globally in USD terms since the Stand-By Arrangement (SBA) was reached with the International Monetary Fund (IMF) towards the end of FY23.

Following the completion of the program, the country is now in talks with the lender for a larger and longer loan, estimated to be about $6-$8 billion.

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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