The Keystone: KSE-100: Momentum indicators generate buy signal

The Keystone for December 03, 2010

KSE-100: Momentum indicators generate buy signal

The index registered a higher high and a higher low and closed around its minor resistance level of 11,345 points. The overall trend remains bullish, with the next critical resistance around 11,553 points (61.8% retracement of 15,739 points and 4,781 points).

The Stochastic Oscillator has now reversed and has once again generated a buy signal, while the RSI has shown improvement as well. Moreover the MACD maintains its uptrend as well as its buy signal.

In light of the above factors we remain bullish on the market.

KSE-100: Consolidation above trendline suggests further upside

The Keystone for November 22, 2010

KSE-100: Consolidation above trendline suggests further upside

The index is in a consolidation phase which is allowing its indicators to cool off.

The Stochastic Oscillator on the daily chart maintains its downtrend and is approaching the oversold region, while the RSI is neutral. Moreover the MACD maintains its buy signal.

The index is in a consolidation phase. Accumulate on weakness.

The Keystone for November 16, 2010 KSE-100: Formation an adjustment to the prior days' correction

The index's formation serves as an adjustment to the three days of negative closing. Moreover this is further strengthened by the fact that volumes were also very low.

The Stochastic Oscillator on the daily chart maintains its sell signal which makes its formation a bearish divergence, while the MACD has started to show weakness and could potentially generate a sell signal in the near term.

Taking the above factors into consideration, sell on strength is advised

The Keystone for November 15, 2010 KSE-100: Weekly formation suggests correction to continue

On the weekly charts the index closed marginally in the red while average daily volume increased. This suggests possible distribution and the likelihood of the correction to continue.

The Stochastic Oscillator on the daily chart has generated a sell signal while on the weekly chart has generated a sell signal in the overbought region. Also the RSI has taken to a downtrend and has generated a sell signal in the process.

Taking the above factors into consideration, sell on strength is advised.

The Keystone: KSE-100: Strong closing with good volumes suggests further upside

The Keystone for November 10, 2010

KSE-100: Strong closing with good volumes suggests further upside

The index registered a higher high and a higher low thus maintaining itself above its critical resistance level as well as its resistance trendline. This confirms the breakout and suggests further upside.

The Stochastic Oscillator and RSI maintain their respective uptrends as well as their buy signals, while the MACD has started to conform to an uptrend and in the process has generated a buy signal.

In light of the above factors, we suggest staying long in the market.

The Keystone for November 08, 2010 KSE-100: Breakout with volumes suggests further upside

The index has given a breakout above its resistance trendline as well as its critical resistance level of 10,773 points. Moreover this breakout has come in with a volume which, as highlighted earlier, suggests further upside.

The Stochastic Oscillator maintains its uptrend as well as its buy signal, while the RSI has edged into the overbought region. Also the MACD has reversed and has once again generated a buy signal.

Now that the index has given a breakout, we suggest a buy with a potential swing towards 11,300 to 11,500 points

KSE-100 Index: Formation Indicative Of A Top; Indicators Have Entered Overbought Region

The Keystone for October 01, 2010

First support 9,957 points, second support 9,896 points; First resistance 10,054 points, second resistance 10,106 points

The index opened on a negative note however after touching its day's low around mid-day, took to an uptrend only to close in the red. Volumes increased by 92.81% and stood at 88.83 mln. The index has created a "Hanging Man" formation which in an uptrend is indicative of a top. Moreover it has created this formation around its 30-week moving average which is currently at 10,025 points as well as its short-term resistance trendline (blue line). This suggests that the uptrend is nearing completion.

The Stochastic Oscillator has now entered the overbought region and is at a level from where it usually reverses. Moreover the RSI too has leveled of and faces strong resistance from its previous top at 61.09 (14-D RSI). Hence any upside should be capitalized upon to sell.

The first support is at 9,957 points and the second support is at 9,896 points. The first resistance is at 10,054 points and the second resistance is at 10,106 points.