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.

KSE-100 Index: Indicators And Formation Suggests Uptrend Nearing Completion; 30-Week MA Creates Resistance

First support 9,965 points, second support 9,918 points; First resistance 10,065 points, second resistance 10,123 points

The index opened marginally positive and after touching its day's low, took to an uptrend to close in the green. Volumes declined by 46.07% and stood at 46.08 mln. The index has created a double-top around its 30-week moving average which is currently at 10,025 points. This suggests that the uptrend is nearing completion.

The Stochastic Oscillator maintains its uptrend and is rapidly approaching the overbought region. Moreover the RSI continue to rise however is approaching its previous top at 61.09 (14-D RSI). Hence any upside should be capitalized upon to sell.

The first support is at 9,965 points and the second support is at 9,918 points. The first resistance is at 10,065 points and the second resistance is at 10,123 points.

Indicators Suggest Recovery To Continue; 30-DMA Creates Resistance

The Keystone for September 29, 2010

First support 9,928 points, second support 9,866 points; First resistance 10,040 points, second resistance 10,103 points

The index opened positive and remained strong throughout the day to close off the session in the green. Volumes increased by 25.57% and stood at just 86.74 mln. The index managed to register a higher high and a higher low, however, the 30-DMA created resistance. There is a bit more steam left in the recovery phase, with resistance placed between 10,050 and 10,140 points.

The Stochastic Oscillator maintains its uptrend as well as its buy signal having now reached the half-way mark of the overbought/oversold cycle. Moreover the RSI has shown some improvement as well. This confirms the above view that the recovery phase is likely to continue for now.

The first support is at 9,928 points and the second support is at 9,866 points. The first resistance is at 10,040 points and the second resistance is at 10,103 points.

KSE-100 Index: Formation Suggests Recovery To Continue As 200-DMA Creates Support

The Keystone for September 28, 2010

First support 9,881 points, second support 9,826 points; First resistance 9,988 points, second resistance 10,036 points

The index opened marginally negative however after touching its day's low, took to a steady uptrend to close off the session modestly in the green. Volumes increased by 42.20% and stood at just 69.08 mln. The index managed to register a higher high and a higher low, with the 200-DMA giving it support throughout most of the session. This is bullish and suggests that the index's short-term recovery is likely to continue.

The Stochastic Oscillator has now generated a buy signal having just cleared the oversold region thus adding credence to the above view of a recovery. Moreover the RSI has shown some improvement as well.

The first support is at 9,881 points and the second support is at 9,826 points. The first resistance is at 9,988 points and the second resistance is at 10,036 points.

KSE-100 Index: Formation Suggests Recovery To Continue As 200-DMA Creates Support

The Keystone for September 28, 2010

First support 9,881 points, second support 9,826 points; First resistance 9,988 points, second resistance 10,036 points

The index opened marginally negative however after touching its day's low, took to a steady uptrend to close off the session modestly in the green. Volumes increased by 42.20% and stood at just 69.08 mln. The index managed to register a higher high and a higher low, with the 200-DMA giving it support throughout most of the session. This is bullish and suggests that the index's short-term recovery is likely to continue.

The Stochastic Oscillator has now generated a buy signal having just cleared the oversold region thus adding credence to the above view of a recovery. Moreover the RSI has shown some improvement as well.

The first support is at 9,881 points and the second support is at 9,826 points. The first resistance is at 9,988 points and the second resistance is at 10,036 points.

KSE-100 Index: Closing Above 50-DMA And 200-DMA Suggests Short-Term Recovery To Continue; Weekly

The Keystone for September 27, 2010

First support 9,857 points, second support 9,797 points; First resistance 9,971 points, second resistance 10,026 points

The index opened flat and after initially dipping in the red, managed to sustain in the green throughout most of the session and close off the session on a positive note. Volumes increased by 23.28% and stood at 48.58 mln. Average weekly volumes declined by 28.29% and stood at 58 mln, while the index declined 143 points. The index on the daily chart managed to close above its 50-DMA and 200-DMA, while also creating a lower shadow. On the weekly, however, it has created an Engulfing Bearish formation which is indicative of a top. This suggests that the recovery is likely to a short term one.

The Stochastic Oscillator on the daily chart is extremely oversold and is on the verge of generating a buy signal. Moreover the RSI on the daily chart edged up slightly. On the weekly chart the Stochastic Oscillator maintains its buy signal, while the RSI has shown weakness. Moreover on the weekly chart the index failed to sustain above the 30-week moving average (currently at 10,025 points) which is bearish.

The first support is at 9,857 points and the second support is at 9,797 points. The first resistance is at 9,971 points and the second resistance is at 10,026 points.

KSE-100 Index: Decline With Low Volumes Suggests Possibility Of Recovery; 200-DMA Tested

The Keystone for September 24, 2010

First support 9,800 points, second support 9,739 points; First resistance 9,922 points, second resistance 9,978 points

The index marginally positive however after touching its day's high, took to a steady downtrend to close in the red. Volumes declined by 22.52% and stood at just 39.41 mln. The index's decline came in with low volumes, which suggests that there is a possibility of a short-term recovery. Moreover the index tested the 200-DMA thus increasing the possibility of a recovery. The test is to see if a follow through occurs. If the index fails to do so, the index could come down to test its next support level of 9,400 points.

The Stochastic Oscillator has now become oversold thus adding credence to the above view of a recovery. On the other hand the RSI and MACD continue to show weakness with the latter generating a sell signal. This suggests that the recovery would be a short-term one.

The first support is at 9,800 points and the second support is at 9,739 points. The first resistance is at 9,922 points and the second resistance is at 9,978 points.

KSE-100 Index: Test Of 200-DMA Likely To Create Support; Indicators Cooling Off

The Keystone for September 23, 2010

First support 9,888 points, second support 9,831 points; First resistance 9,995 points, second resistance 10,052 points

The index opened marginally positive however after touching its day's high, took to a downtrend to close off the session in the red. Volumes showed a decline of 42.51% and stood at 50.86 mln. The index registered a lower high and a lower low to close below the 50-DMA. This is bearish, however, the 200-DMA (currently at 9,885 points) looms below which could create support.

The Stochastic Oscillator maintains its sell signal however has cooled off considerably and is now approaching the oversold region. On the other hand the RSI and MACD continue to show weakness. The test is to see if the 200-DMA holds. Failure to do so would lead the index to test its lower trendline which is currently around 9,400 points.

Taking the above factors into consideration, it is advisable to play the range for now.

The first support is at 9,888 points and the second support is at 9,831 points. The first resistance is at 9,995 points and the second resistance is at 10,052 points.

KSE-100 Index: Indicators Continue To Remain Hawkish As Trendline Creates Resistance

The Keystone for September 22, 2010

First support 9,928 points, second support 9,863 points; First resistance 10,050 points, second resistance 10,107 points

Analysis and Overview:

The index flat however after touching its day's high, took to a downtrend to close off the session in the red and around its day's low. Volumes showed an increase of 36.00% and stood at 88.47 mln. The index negatively reacted from its channel's resistance and closed marginally below the 50-DMA. This is bearish and suggests that the correction is likely to continue.

The Stochastic Oscillator maintains its sell signal thus confirming the bearish view. Moreover the RSI continues to show weakness. Also on the weekly chart the MACD continues on its downtrend and maintains its sell signal.

The index is in a consolidation phase with 10,139 points being the resistance and support is placed at 9,875 points being the 200-DMA. Play the range for now.

The first support is at 9,928 points and the second support is at 9,863 points. The first resistance is at 10,050 points and the second resistance is at 10,107 points.

KSE-100 Index: Indicators Get Chance To Cool Off As Consolidation Underway

The Keystone for September 21, 2010

First support 10,005 points, second support 9,945 points; First resistance 10,133 points, second resistance 10,202 points

The index on a positive note however after touching its day's high it remained range-bound to close off the session in the green, which was below the open. Volumes showed a marginal decline of 2.24% and stood at 65.05 mln. The index's formation is a filled green candlestick which suggests that the trend is waning.

The Stochastic Oscillator maintains its sell signal, which makes the formation a bearish divergence. Moreover the RSI continues to show weakness. Also on the weekly chart the MACD continues on its downtrend and maintains its sell signal.

The index is in a consolidation phase with 10,139 points being the resistance and support is placed at 9,875 points being the 200-DMA. Play the range for now.

The first support is at 10,005 points and the second support is at 9,945 points. The first resistance is at 10,133 points and the second resistance is at 10,202 points

KSE-100 Index: Closing Above Moving Averages With Volumes Suggests Uptrend To Continue

The Keystone for September 15, 2010

First support 10,022 points, second support 9,947 points; First resistance 10,182 points, second resistance 10,268 points

The index opened on a positive note and remained strong throughout the day to close well into the green. Volumes were twice those of Thursday and stood at 100.56 mln. This is the highest volume since 30th July. The index sustained itself above the 30-DMA, 50-DMA and 200-DMA and closed well above it. This suggests that the index's inertial momentum is likely to continue for now. Critical resistance is placed between 10,260 points and 10,430 points.

The Stochastic Oscillator maintains a strong uptrend but has become overbought. This is usually commonplace when a breakout occurs. In the case of the index, it has given a breakout above its moving averages, hence could continue to remain so for a short while. Moreover the RSI maintains a steady uptrend and has some room before it becomes overbought. A cautious buy strategy is suggested.

The first support is at 10,022 points and the second support is at 9,947 points. The first resistance is at 10,182 points and the second resistance is at 10,268 points

KSE-100 Index: Lackluster Performance With Low Volumes Suggests Formation An Adjustment In The Downtrend

The Keystone for September 07, 2010

First support 9,646 points, second support 9,588 points; First resistance 9,759 points, second resistance 9,817 points

The index opened on a negative note and after touching its day's high in the initial hours, took to a steady downtrend and remained in the red throughout the day only to recover and end the day on a marginally positive note. Volumes were dismally low showing a decline of 47.67% and stood at a paltry 19.63 mln. The index continued to show weakness and registered a lower high and a lower low which suggests that the formation was more of an adjustment in the downtrend.

The Stochastic Oscillator has now generated a sell signal after becoming overbought, while the RSI has started to show some weakness. Moreover, the 30-DMA has cut the 50-DMA and 100-DMA from above which is a bearish signal and adds credence to the view.

The first support is at 9,646 points and the second support is at 9,588 points. The first resistance is at 9,759 points and the second resistance is at 9,817 points.

KSE-100 Index: Formation Confirms Top As 200-DMA Creates Resistance; Indicators Generate Sell Signal

The Keystone for September 06, 2010

First support 9,627 points, second support 9,550 points; First resistance 9,772 points, second resistance 9,850 points

The index opened marginally negative and after touching its day's high, took to a steady downtrend to close in the red. Volumes declined by 14.38% and stood at 37.52 mln. The index's 200-DMA has now confirmed its status as a critical resistance level for the index. As a result the index registered a lower high and a lower low to close in the red, thus adding credence to Thursday's candlestick which was a signal of a top.

The Stochastic Oscillator has now reversed its trend and has generated a sell signal after becoming overbought, while the RSI has started to show a gradual weakness. On the weekly chart the 50-week moving average (currently at 9,775 points) continues to create resistance for the index.

The first support is at 9,627 points and the second support is at 9,550 points. The first resistance is at 9,772 points and the second resistance is at 9,850 points

Keystone: KSE-100 Index: Formation Indicative Of A Top As 200-DMA Creates Resistance

The Keystone for September 03, 2010

First support 9,700 points, second support 9,628 points; First resistance 9,827 points, second resistance 9,892 points



The index opened on a negative note and after touching its day's high, took to a steady downtrend. It however recovered and managed to close in the green. Volumes declined by 16.14% and stood at 43.82 mln. The index's 200-DMA created strong resistance which led to the index creating a double-top. Moreover the formation created by the index is a 'Shooting Star' which in an uptrend is indicative of a top and suggests that the index could assume a downtrend in the near term.

The Stochastic Oscillator maintains its uptrend however it has now entered the overbought region, while the RSI has leveled off. Moreover, the 30-DMA, 50-DMA and 100-DMA maintain their respective downtrends, with a strong possibility that the 30-DMA and 100-DMA are likely to cut the 50-DMA from above.

The first support is at 9,700 points and the second support is at 9,628 points. The first resistance is at 9,827 points and the second resistance is at 9,892 points.

KSE-100 Index: 200-DMA Creates Strong Resistance As Index Remains Under Pressure

The Keystone for September 02, 2010

First support 9,665 points, second support 9,587 points; First resistance 9,791 points, second resistance 9,857 points

Analysis and Overview:

The index opened on a negative note and remained under pressure throughout the day to close in the red. Volumes declined by 36.01% and stood at 52.25 mln. The index's 200-DMA created strong resistance which caused the index to open and subsequently remain in the red throughout the day. This suggests that the short-term recovery is nearing completion and any upside should be capitalized upon to sell.

The Stochastic Oscillator continues to maintain its uptrend and is rapidly approaching the overbought region, while the RSI leveled off. Moreover, the MACD maintains its sell signal, while the 30-DMA, 50-DMA and 100-DMA maintain their respective downtrends, with a strong possibility that the 30-DMA and 100-DMA are likely to cut the 500-DMA from above.

The first support is at 9,665 points and the second support is at 9,587 points. The first resistance is at 9,791 points and the second resistance is at 9,857 points.

KSE-100 Index: Strong Closing With Volumes Suggests Recovery Phase Likely To Continue In The Short-Term

The Keystone for September 01, 2010

First support 9,758 points, second support 9,645 points; First resistance 9,898 points, second resistance 9,976 points

The index opened positive and remained strong throughout the session to close well into the green. Volumes showed a marked improvement of 122.83% and stood at 81.65 mln ? the second highest volume in August. The index managed to register a higher low. However what remains to be seen is if the index manages to close and subsequently stay above the 200-DMA. While there is a short-term recovery underway, avoid chasing prices and sell on strength.

The Stochastic Oscillator has shown a strong move to the uptrend and has generated a buy signal in the process, while the RSI has also shown a decent improvement. On the flip side, the MACD maintains its sell signal, while the 30-DMA, 50-DMA and 100-DMA maintain their respective downtrends, with a strong possibility that the 30-DMA and 50-DMA are likely to cut the 100-DMA from above.

While the recovery phase could continue for a bit longer, it is advisable to sell on strength as 9,900 points plays a critical resistance benchmark for the index.

The first support is at 9,758 points and the second support is at 9,645 points. The first resistance is at 9,898 points and the second resistance is at 9,976 points.

KSE-100 Index: Formation Suggests Further Downside Risk As Index Closes At A New Low

The Keystone for August 31, 2010

First support 9,440 points, second support 9,354 points; First resistance 9,578 points, second resistance 9,639 points

The index opened marginally positive and after touching its day's high, took to a steady downtrend only to close in the red. Volumes increased marginally by 3.50% and stood at 36.64 mln. The index has formed an Engulfing Bearish formation while also registering a new low on closing basis. This is bearish and suggests further downside risk.

The Stochastic Oscillator on the daily chart has become oversold though in a failure swing. However the RSI has once again started to show weakness and the MACD maintains its sell signal. Also the 30-DMA, 50-DMA and 100-DMA maintain their respective downtrends, with the likelihood of a crossover building up with each passing day. This would further add credence to the bearish view.

The first support is at 9,440 points and the second support is at 9,354 points. The first resistance is at 9,578 points and the second resistance is at 9,639 points.

KSE-100 Index: Positive Closing With Low Volumes Suggests Index Undergoing Adjustment Phase

The Keystone for August 30, 2010

First support 9,523 points, second support 9,454 points; First resistance 9,657 points, second resistance 9,727 points

The index opened marginally positive and after initially setting its day's range it remained range-bound to close marginally in the green. Volumes sharply declined by 44.21% and stood at 35.40 mln. Average weekly volumes declined by 17.93% while the index lost 262 points. The index's formation serves as a breather and an adjustment. As it stands, the trend remains bearish as the 30-DMA and 100-DMA have taken to their respective downtrends and in the near term could cut the 30-DMA from above while the index continues to trade below them.

The Stochastic Oscillator on the daily chart has become oversold, while the RSI is neutral and the MACD maintains its sell signal. Also the Bollinger Bands have now conformed to a downtrend thus confirming the view that the trend has turned bearish. On the weekly charts as well, the index's indicators maintain their bearish stance.

The first support is at 9,523 points and the second support is at 9,454 points. The first resistance is at 9,657 points and the second resistance is at 9,727 points.

KSE-100 Index: Formation Serves As An Adjustment In The Overall Downtrend

The Keystone for August 27, 2010

First support 9,510 points, second support 9,421 points; First resistance 9,647 points, second resistance 9,689 points

Analysis and Overview:

The index opened marginally positive and after initially dipping in the red, took to a steady uptrend only to form a double-top, but managed to close in the green. Volumes increased by 37.99% and stood at 63.45 mln. The index’s formation serves as a breather and an adjustment as it had been closing in the red for the previous three sessions. As it stands, the trend remains bearish as the 30-DMA and 100-DMA have taken to their respective downtrends and in the near term could cut the 30-DMA from above.

The Stochastic Oscillator on the daily chart maintains its downtrend as well as its sell signal, while the RSI too maintains its weakness and the MACD maintains its sell signal. Also the Bollinger Bands have now conformed to a downtrend, thus confirming the view that the trend has turned bearish.

The first support is at 9,510 points and the second support is at 9,421 points. The first resistance is at 9,647 points and the second resistance is at 9,689 points

KSE-100 Index: Sustained Closing Below The 200-DMA Suggests Correction To Continue

The Keystone for August 26, 2010

First support 9,478 points, second support 9,365 points; First resistance 9,631 points, second resistance 9,731 points

The index opened flat and after touching its day's high, took to a steady downtrend to close in the red. Volumes increased by 15.86% and stood at 45.98 mln. The index gave a sustained closing below the 200-DMA which suggests that downward pressure is likely to prevail on the index for now and that the index is likely to register a lower highs and a lower lows in each swing.

The Stochastic Oscillator on the daily chart maintains its downtrend as well as its sell signal, while the RSI too has started to show weakness. Also the MACD maintains its sell signal. Also the Bollinger Bands have now conformed to a downtrend thus confirming the view that the trend has turned bearish. On the weekly chart the Stochastic Oscillator maintains its downtrend while generating a sell signal and now the MACD too has conformed to a downtrend having reissued a sell signal.

The first support is at 9,478 points and the second support is at 9,365 points. The first resistance is at 9,631 points and the second resistance is at 9,713 points.

KSE-100 Index: Closing below 200-DMA Suggests Further Downside; Indicators Generate Sell Signal

The Keystone for August 25, 2010

First support 9,586 points, second support 9,478 points; First resistance 9,712 points, second resistance 9,791 points

The index opened flat and after touching its day's high, took to a steady downtrend to close in the red. Volumes declined by 21.93% and stood at 39.69 mln. The index has broken below the 200-DMA which suggests that downward pressure is likely to prevail on the index for now and that the index is likely to register a lower highs and a lower lows in each swing.

The Stochastic Oscillator on the daily chart has now taken to a downtrend and has generated a sell signal, while the RSI too has started to show weakness. Also the MACD maintains its sell signal. On the weekly chart the Stochastic Oscillator maintains its downtrend while generating a sell signal and now the MACD too has conformed to a downtrend having reissued a sell signal.

The first support is at 9,586 points and the second support is at 9,478 points. The first resistance is at 9,712 points and the second resistance is at 9,791 points

KSE-100 Index: Formation Further Compounds Bearish View; Indicators Now Generate Sell Signal

The Keystone for August 24, 2010

KSE-100 Index: Formation Further Compounds Bearish View; Indicators Now Generate Sell Signal

First support 9,746 points, second support 9,675 points; First resistance 9,876 points, second resistance 9,949 points

Analysis and Overview:

The index opened positive, however after touching its day's high, took to a steady downtrend to close in the red. Volumes increased by 17.42% and stood at 50.83 mln. The index has created an Engulfing Bearish formation, which in an uptrend indicates a top and is all the more bearish considering the fact that Friday's formation was a "Hanging Man" formation. Moreover, the index has also formed a double top around 9,890 points, while also taking resistance from its downward channel's resistance trendline. This suggests that the index is likely to register a lower high and a lower low in each swing.

The Stochastic Oscillator on the daily chart has started to stall in the overbought region, while the RSI has started to show weakness. Also the MACD maintains its sell signal. On the weekly chart the Stochastic Oscillator maintains its downtrend while generating a sell signal and now the MACD too has conformed to a downtrend having reissued a sell signal.

The first support is at 9,746 points and the second support is at 9,675 points. The first resistance is at 9,876 points and the second resistance is at 9,949 points.

KSE-100 Index: Formation Suggests Uptrend Nearing Completion; Momentum Indicators Almost Overbought

The Keystone for August 23, 2010

First support 9,801 points, second support 9,730 points; First resistance 9,922 points, second resistance 9,984 points

The index opened flat and maintained a steady downtrend throughout the first half of the session. However after touching its day's low, it started to recover and closed off the session positive. Volumes declined by 22.57% and stood at 43.29 mln. The index's formation is a "Hanging Man" formation, which in an uptrend indicates a top. This suggests that the recovery phase is nearing completion. Critical resistance levels are 9,938 points being the 50-DMA and the 100-DMA which is presently at 10,047 points and declining.

The Stochastic Oscillator on the daily chart has become overbought, thus adding credence to the view that the recovery phase is nearing completion. The RSI has started to level off as well, while the MACD maintains its sell signal. On the weekly chart the Stochastic Oscillator maintains its downtrend while generating a sell signal and now the MACD too has conformed to a downtrend having reissued a sell signal.

The first support is at 9,801 points and the second support is at 9,730 points. The first resistance is at 9,922 points and the second resistance is at 9,984 points.

KSE-100 Index: Short-Term Recovery Possible As 200-DMA Tested; Indicators Oversold On Daily Chart

The Keystone for August 13, 2010

First support 9,749 points, second support 9,658 points; First resistance 9,862 points, second resistance 9,918 points

The index opened positive and after remaining range-bound through most of the day, took to a sharp downtrend to close well in the red and around the 200-DMA. Volumes declined by 58.57% and stood at 25.54 mln (1st day of Ramadan, hence shorter working hours). The fact that the index closed around the 200-DMA suggests that a short-term recovery is possible. Critical resistance is placed between 10,070 (100-DMA) and 10,173 points, while support is placed at 9,790 points being the 200-DMA.

The Stochastic Oscillator on the daily chart has now started to bottom out while being well oversold, thus suggesting the possibility of a short-term recovery. The RSI too is approaching the oversold region and could lead to a short-term recovery. However on the weekly chart the Stochastic Oscillator has assumed a downtrend and has generated a sell signal in the process. MACD have conformed to their respective downtrends and in the process have generated sell signals.

The first support is at 9,749 points and the second support is at 9,658 points. The first resistance is at 9,862 points and the second resistance is at 9,918 points

KSE-100 Index: Short-Term Recovery Possible As 200-DMA Tested; Indicators Oversold On Daily Chart

The Keystone for August 13, 2010

First support 9,749 points, second support 9,658 points; First resistance 9,862 points, second resistance 9,918 points

The index opened positive and after remaining range-bound through most of the day, took to a sharp downtrend to close well in the red and around the 200-DMA. Volumes declined by 58.57% and stood at 25.54 mln (1st day of Ramadan, hence shorter working hours). The fact that the index closed around the 200-DMA suggests that a short-term recovery is possible. Critical resistance is placed between 10,070 (100-DMA) and 10,173 points, while support is placed at 9,790 points being the 200-DMA.

The Stochastic Oscillator on the daily chart has now started to bottom out while being well oversold, thus suggesting the possibility of a short-term recovery. The RSI too is approaching the oversold region and could lead to a short-term recovery. However on the weekly chart the Stochastic Oscillator has assumed a downtrend and has generated a sell signal in the process. MACD have conformed to their respective downtrends and in the process have generated sell signals.

The first support is at 9,749 points and the second support is at 9,658 points. The first resistance is at 9,862 points and the second resistance is at 9,918 points

KSE-100 Index: Short-Term Recovery Possible As 200-DMA Tested; Indicators Oversold On Daily Chart

The Keystone for August 13, 2010

First support 9,749 points, second support 9,658 points; First resistance 9,862 points, second resistance 9,918 points

The index opened positive and after remaining range-bound through most of the day, took to a sharp downtrend to close well in the red and around the 200-DMA. Volumes declined by 58.57% and stood at 25.54 mln (1st day of Ramadan, hence shorter working hours). The fact that the index closed around the 200-DMA suggests that a short-term recovery is possible. Critical resistance is placed between 10,070 (100-DMA) and 10,173 points, while support is placed at 9,790 points being the 200-DMA.

The Stochastic Oscillator on the daily chart has now started to bottom out while being well oversold, thus suggesting the possibility of a short-term recovery. The RSI too is approaching the oversold region and could lead to a short-term recovery. However on the weekly chart the Stochastic Oscillator has assumed a downtrend and has generated a sell signal in the process. MACD have conformed to their respective downtrends and in the process have generated sell signals.

The first support is at 9,749 points and the second support is at 9,658 points. The first resistance is at 9,862 points and the second resistance is at 9,918 points

KSE-100 Index: Short-Term Recovery Possible As 200-DMA Tested; Indicators Oversold On Daily Chart

The Keystone for August 13, 2010

First support 9,749 points, second support 9,658 points; First resistance 9,862 points, second resistance 9,918 points

The index opened positive and after remaining range-bound through most of the day, took to a sharp downtrend to close well in the red and around the 200-DMA. Volumes declined by 58.57% and stood at 25.54 mln (1st day of Ramadan, hence shorter working hours). The fact that the index closed around the 200-DMA suggests that a short-term recovery is possible. Critical resistance is placed between 10,070 (100-DMA) and 10,173 points, while support is placed at 9,790 points being the 200-DMA.

The Stochastic Oscillator on the daily chart has now started to bottom out while being well oversold, thus suggesting the possibility of a short-term recovery. The RSI too is approaching the oversold region and could lead to a short-term recovery. However on the weekly chart the Stochastic Oscillator has assumed a downtrend and has generated a sell signal in the process. MACD have conformed to their respective downtrends and in the process have generated sell signals.

The first support is at 9,749 points and the second support is at 9,658 points. The first resistance is at 9,862 points and the second resistance is at 9,918 points

KSE-100 Index: Formation Suggests Short-Term Recovery Possible; Overall Trend Bearish

The Keystone for August 12, 2010

First support 9,807 points, second support 9,753 points; First resistance 9,931 points, second resistance 9,989 points

Analysis and Overview:

The index opened positive and after touching its day's high, took to a sharp downtrend to close well in the red and below the 50-DMA. Volumes declined by 34.57% and stood at 61.64 mln. Despite the fact that the index closed below the 50-DMA, it managed to sustain above its former double top at 9,850 points. This suggests that a short-term recovery is possible. Critical resistance is placed between 10,078 (100-DMA) and 10,173 points, while support is placed at 9,790 points being the 200-DMA.

The Stochastic Oscillator on the daily chart has become well oversold thus suggesting the possibility of a short-term recovery. However on the weekly chart it has now assumed a downtrend and has generated a sell signal in the process. The RSI and MACD have conformed to their respective downtrends and in the process have generated sell signals.

The first support is at 9,807 points and the second support is at 9,753 points. The first resistance is at 9,931 points and the second resistance is at 9,989 points.

KSE-100 Index: Closing Below 50-DMA Adds Credence To The Bearish View; 30-DMA To Create Resistance

The Keystone for August 11, 2010

First support 9,836 points, second support 9,774 points; First resistance 9,929 points, second resistance 9,996 points

Analysis and Overview:

The index opened marginally negative and after forming a double top at its day's high, took to a sharp downtrend to close well in the red and below the 50-DMA. This adds credence to the view that the trend has turned bearish. Moreover volumes increased by 17.61% and stood at 94.21 mln, which indicates that the correction came in with volumes. The next support level is 9,780 points being the 200-DMA.

The Stochastic Oscillator on the daily chart maintains its downtrend as well as its sell signal, while on the weekly chart has now assumed a downtrend and generating a sell signal in the process. The RSI and MACD have conformed to their respective downtrends and in the process have generated sell signals.

Taking the above factors into consideration, any upside should be capitalized upon to sell as the overall trend has turned bearish. Going forward the next critical level should be the 200-DMA which currently stands at 9,788 points, while critical resistance stands at 10,120 points being the 30-DMA.

The first support is at 9,836 points and the second support is at 9,774 points. The first resistance is at 9,929 points and the second resistance is at 9,996 points

KSE-100 Index: Closing Below 30-DMA And 100-DMA Suggests Further Downside

The Keystone for August 10, 2010

KSE-100 Index: Closing Below 30-DMA And 100-DMA Suggests Further Downside

First support 9,953 points, second support 9,838 points; First resistance 10,107 points, second resistance 10,191 points

Analysis and Overview:

The index opened marginally positive and after touching its day's high, took to a sharp downtrend to close well in the red in the process breaching the 30-DMA as well as the 100-DMA. This suggests further pressure. Volumes increased by 33.06% and stood at 80.10 mln which suggests that the correction came in with relatively higher volume.

The Stochastic Oscillator on the daily chart maintains its downtrend as well as its sell signal. The RSI has also generated a sell signal and has now conformed to a steady downtrend. Moreover the MACD too has conformed to a downtrend and has now confirmed a sell signal.

Taking the above factors into consideration, any upside should be capitalized upon to sell as the trend has turned negative. Going forward the next critical level should be the 200-DMA which currently stands at 9,780 points.

The first support is at 9,953 points and the second support is at 9,838 points. The first resistance is at 10,107 points and the second resistance is at 10,191 points.

KSE-100 Index: Formation And Indicators Suggest Correction To Continue; Indicators Generate Sell Signal On Weekly Chart

The Keystone for August 09, 2010

First support 10,256 points, second support 10,186 points; First resistance 10,394 points, second resistance 10,480 points

The index opened flat and remained in the red throughout most of the session. However it witnessed a sharp recovery in the second half and after touching its day's high, took to a downtrend to close in the red. Volumes were marginally up by 0.45% and stood at 55.99 mln. Average weekly volumes declined by 22.43% and stood at 62 mln, while the index declined 204 points. The index reacted from its critical resistance band which is between 10,430 points and 10,539 points and registered a lower high and a lower low. This suggests that the correction is likely to continue. Critical support stands between 10,050 points 10,120 points.

The Stochastic Oscillator on the daily chart maintains its downtrend while on the weekly chart has now generated a sell signal while being extremely overbought. Moreover the RSI on the daily chart has taken to a downtrend and maintains its sell signal as well.

The above factors suggest that the index has started on a corrective trend. Hence any upside should be capitalized upon to sell.

The first support is at 10,256 points and the second support is at 10,186 points. The first resistance is at 10,394 points and the second resistance is at 10,480 points.

KSE-100 Index: Correction Likely To Continue As Resistance Band Clips Gains

The Keystone for August 06, 2010

First support 10,296 points, second support 10,236 points; First resistance 10,412 points, second resistance 10,475 points

The index opened on a positive note and after touching its day's high, took to a downtrend only to close in the red. Volumes declined by 23.17% and stood at 55.74 mln. The index took resistance from its resistance band, which is between 10,430 points and 10,539 points, in the process registering a lower high and a lower low. This makes the above mentioned levels a critical resistance for the index.

The Stochastic Oscillator on the daily chart maintains its downtrend as well as its sell signal, while the RSI has also generated a sell signal and has now conformed to a steady downtrend. Moreover the MACD too has conformed to a downtrend and has now confirmed a sell signal.

Taking the above factors into consideration, any upside should be capitalized upon to sell as the index is due for a correction.

The first support is at 10,296 points and the second support is at 10,236 points. The first resistance is at 10,412 points and the second resistance is at 10,475 points.

KSE-100 Index: Monday's Gap Creates Resistance; Critical Resistance Looming Overhead

The Keystone for August 05, 2010

First support 10,327 points, second support 10,276 points; First resistance 10,456 points, second resistance 10,532 points

Analysis and Overview:

The index opened on a positive note however after touching its day's high, took to a downtrend, momentarily dipping in the red, only to close flat. Volumes increased by 58.65% and stood at 72.55 mln. The index's formation is a shooting star which was created around Monday's gap. This is bearish. Moreover the index's critical resistance at 10,539 points looms overhead, which could clip gains.

The Stochastic Oscillator on the daily chart maintains its downtrend as well as its sell signal, while the RSI has also generated a sell signal after becoming overbought. Moreover the MACD too has conformed to a downtrend and has just about generated a sell signal.

Taking the above factors into consideration, any upside should be capitalized upon to sell as the index is due for a correction.

The first support is at 10,327 points and the second support is at 10,276 points. The first resistance is at 10,456 points and the second resistance is at 10,532 points.

KSE-100 Index: Formation And Indicators Suggests Uptrend Nearing Completion; Critical Resistance Could Clip Gains

The Keystone for August 03, 2010

First support 10,309 points, second support 10,239 points; First resistance 10,443 points, second resistance 10,507 points

Analysis and Overview:

The index opened significantly negative however after touching its day's low it showed a marginal recovery only to close in the red. Volumes declined by 30.24% and stood at 79.51 mln. The index's formation confirms the view of a top and establishes 10,539 points as a significant resistance level. Critical supports lie between 10,000 and 10,170 points.

The Stochastic Oscillator on the daily has now generated a sell signal after becoming extremely overbought, while the RSI has also generated a sell signal after becoming overbought. Moreover the MACD too is starting to lose steam and could generate a sell signal in the near term.

Taking the above factors into consideration, any upside should be capitalized upon to sell as the index is due for a correction.

The first support is at 10,309 points and the second support is at 10,239 points. The first resistance is at 10,443 points and the second resistance is at 10,507 points

KSE-100 Index: Formation And Indicators Suggests Uptrend Nearing Completion; Critical Resistance Could Clip Gains

The Keystone for August 02, 2010

First support 10,448 points, second support 10,366 points; First resistance 10,564 points, second resistance 10,621 points

The index opened marginally positive and after touching its day's low, took to a steady uptrend to close in the green. Volumes increased by 62.07% and stood at 113.98 mln. Average weekly volumes marginally increased by 1.06% and stood at 80 mln, while the index gained 223 points. The index closed around its critical resistance at 10,530 points. This is a critical resistance level for the index and it usually does not sustain above it for too long.

The Stochastic Oscillator on the daily and weekly chart has now started to stall while extremely overbought. Moreover the RSI on the daily chart is overbought as well, while on the weekly chart it is approaching its critical resistance level.

The above factors suggest that the index's uptrend is nearing completion. Hence any upside should be capitalized upon to sell.

The first support is at 10,448 points and the second support is at 10,366 points. The first resistance is at 10,564 points and the second resistance is at 10,621 points.

KSE-100 Index: Formation Suggests Uptrend Losing Momentum; Indicators Gradually Turning Negative

The Keystone for July 27, 2010

First support 10,241 points, second support 10,172 points; First resistance 10,362 points, second resistance 10,431 points

The index opened positive and after touching its day's high, remained range-bound throughout the day to close marginally in the green. Volumes witnessed a sharp decline of 40.33% and stood at 40.21 mln. The index's formation is a spinning top, while its cluster of formations suggests that the uptrend is losing momentum.

The Stochastic Oscillator on the daily chart maintains its sell signal, while the RSI is almost overbought. Moreover the MACD too is starting to lose steam and could generate a sell signal in the near term.

Taking the above factors into consideration, any upside should be capitalized upon to sell as the index is due for a short-term correction.

The first support is at 10,241 points and the second support is at 10,172 points. The first resistance is at 10,362 points and the second resistance is at 10,431 points.

KSE-100 Index: Formation Suggests Uptrend Losing Momentum; Indicators Gradually Turning Negative

The Keystone for July 27, 2010

First support 10,241 points, second support 10,172 points; First resistance 10,362 points, second resistance 10,431 points

The index opened positive and after touching its day's high, remained range-bound throughout the day to close marginally in the green. Volumes witnessed a sharp decline of 40.33% and stood at 40.21 mln. The index's formation is a spinning top, while its cluster of formations suggests that the uptrend is losing momentum.

The Stochastic Oscillator on the daily chart maintains its sell signal, while the RSI is almost overbought. Moreover the MACD too is starting to lose steam and could generate a sell signal in the near term.

Taking the above factors into consideration, any upside should be capitalized upon to sell as the index is due for a short-term correction.

The first support is at 10,241 points and the second support is at 10,172 points. The first resistance is at 10,362 points and the second resistance is at 10,431 points.

KSE-100 Index: Formation Suggests Uptrend Losing Momentum; Indicators Gradually Turning Negative

The Keystone for July 27, 2010

First support 10,241 points, second support 10,172 points; First resistance 10,362 points, second resistance 10,431 points

The index opened positive and after touching its day's high, remained range-bound throughout the day to close marginally in the green. Volumes witnessed a sharp decline of 40.33% and stood at 40.21 mln. The index's formation is a spinning top, while its cluster of formations suggests that the uptrend is losing momentum.

The Stochastic Oscillator on the daily chart maintains its sell signal, while the RSI is almost overbought. Moreover the MACD too is starting to lose steam and could generate a sell signal in the near term.

Taking the above factors into consideration, any upside should be capitalized upon to sell as the index is due for a short-term correction.

The first support is at 10,241 points and the second support is at 10,172 points. The first resistance is at 10,362 points and the second resistance is at 10,431 points.

KSE-100 Index: Indicators Maintain Sell Signal Despite Positive Closing; Indicators Topping Out In The Overbought Region

The Keystone for July 26, 2010

First support 10,234 points, second support 10,177 points; First resistance 10,363 points, second resistance 10,434 points

The index opened positive and remained strong throughout the day to close in the green. Volumes increased by 11.90% and stood at 67.39 mln. Average weekly volumes marginally declined by 1.63% and stood at 79 mln, while the index gained 111 points. The index on the daily chart managed to sustain above its critical resistance of 10,260 points. On the weekly chart, though, it has started to stall.

The Stochastic Oscillator on the daily chart maintains its sell signal, which makes Friday's formation a bearish divergence. Moreover on the weekly chart the Stochastic Oscillator on the weekly chart has started to stall in the overbought region. The RSI on the daily chart is gradually approaching the overbought region.

The above factors suggest that the index's uptrend is nearing completion. Hence any upside should be capitalized upon to sell.

The first support is at 10,234 points and the second support is at 10,177 points. The first resistance is at 10,363 points and the second resistance is at 10,434 points

KSE-100 Index: Indicators Maintain Sell Signal Despite Positive Closing; Indicators Topping Out In The Overbought Region

The Keystone for July 26, 2010

First support 10,234 points, second support 10,177 points; First resistance 10,363 points, second resistance 10,434 points

The index opened positive and remained strong throughout the day to close in the green. Volumes increased by 11.90% and stood at 67.39 mln. Average weekly volumes marginally declined by 1.63% and stood at 79 mln, while the index gained 111 points. The index on the daily chart managed to sustain above its critical resistance of 10,260 points. On the weekly chart, though, it has started to stall.

The Stochastic Oscillator on the daily chart maintains its sell signal, which makes Friday's formation a bearish divergence. Moreover on the weekly chart the Stochastic Oscillator on the weekly chart has started to stall in the overbought region. The RSI on the daily chart is gradually approaching the overbought region.

The above factors suggest that the index's uptrend is nearing completion. Hence any upside should be capitalized upon to sell.

The first support is at 10,234 points and the second support is at 10,177 points. The first resistance is at 10,363 points and the second resistance is at 10,434 points.

KSE-100 Index: Levels Stalling Around Critical Resistance; Pressure To Continue

The Keystone for July 23, 2010

First support 10,162 points, second support 10,083 points; First resistance 10,278 points, second resistance 10,339 points

Analysis and Overview:

The index opened flat and remained range-bound throughout the day to close marginally in the red. Volumes witnessed a sharp decline of 49% and stood at 60.22 mln. The index's formation is a spinning top while taking resistance from its critical resistance level of 10,260 points and despite breaching it intraday, the failed to sustain only to close in the red. Moreover the cluster of formations suggests that the index is topping out.

The Stochastic Oscillator on the daily chart has now generated a sell signal just below the overbought region. Moreover the RSI is also gradually starting to stall.

Taking the above factors into consideration, any upside should be capitalized upon to sell as the index is due for a short-term correction.

The first support is at 10,162 points and the second support is at 10,083 points. The first resistance is at 10,278 points and the second resistance is at 10,339 points.

KSE-100 Index: Levels Stalling Around Critical Resistance; Pressure To Continue

The Keystone for July 23, 2010

First support 10,162 points, second support 10,083 points; First resistance 10,278 points, second resistance 10,339 points

Analysis and Overview:

The index opened flat and remained range-bound throughout the day to close marginally in the red. Volumes witnessed a sharp decline of 49% and stood at 60.22 mln. The index's formation is a spinning top while taking resistance from its critical resistance level of 10,260 points and despite breaching it intraday, the failed to sustain only to close in the red. Moreover the cluster of formations suggests that the index is topping out.

The Stochastic Oscillator on the daily chart has now generated a sell signal just below the overbought region. Moreover the RSI is also gradually starting to stall.

Taking the above factors into consideration, any upside should be capitalized upon to sell as the index is due for a short-term correction.

The first support is at 10,162 points and the second support is at 10,083 points. The first resistance is at 10,278 points and the second resistance is at 10,339 points.

KSE-100 Index: Levels Stalling Around Critical Resistance; Pressure To Continue

The Keystone for July 23, 2010

First support 10,162 points, second support 10,083 points; First resistance 10,278 points, second resistance 10,339 points

Analysis and Overview:

The index opened flat and remained range-bound throughout the day to close marginally in the red. Volumes witnessed a sharp decline of 49% and stood at 60.22 mln. The index's formation is a spinning top while taking resistance from its critical resistance level of 10,260 points and despite breaching it intraday, the failed to sustain only to close in the red. Moreover the cluster of formations suggests that the index is topping out.

The Stochastic Oscillator on the daily chart has now generated a sell signal just below the overbought region. Moreover the RSI is also gradually starting to stall.

Taking the above factors into consideration, any upside should be capitalized upon to sell as the index is due for a short-term correction.

The first support is at 10,162 points and the second support is at 10,083 points. The first resistance is at 10,278 points and the second resistance is at 10,339 points.

KSE-100 Index: Formation Suggests Correction To Continue; Indicators Starting to Stall

The Keystone for July 22, 2010

First support 10,174 points, second support 10,095 points; First resistance 10,294 points, second resistance 10,365 points

Analysis and Overview:

The index opened flat and after touching its day's high, took to a downtrend. Around mid-day it bottomed out and started on a recovery trend only to close marginally in the red. Volumes increased by 46.93% and stood at 118.68 mln. The index's formation suggests that the correction is likely to continue as the index once again took resistance from its critical resistance level of 10,260 points and despite breaching it intraday it failed to sustain itself only to close in the red.

The Stochastic Oscillator on the daily chart is gradually approaching the overbought region and any further rise would render it overbought once again. Moreover the RSI is also gradually approaching its overbought region.

Taking the above factors into consideration, any upside should be capitalized upon to sell.

The first support is at 10,174 points and the second support is at 10,095 points. The first resistance is at 10,294 points and the second resistance is at 10,365 points.

KSE-100 Index: Formation Suggests Correction To Continue; Indicators Starting to Stall

The Keystone for July 22, 2010

First support 10,174 points, second support 10,095 points; First resistance 10,294 points, second resistance 10,365 points

Analysis and Overview:

The index opened flat and after touching its day's high, took to a downtrend. Around mid-day it bottomed out and started on a recovery trend only to close marginally in the red. Volumes increased by 46.93% and stood at 118.68 mln. The index's formation suggests that the correction is likely to continue as the index once again took resistance from its critical resistance level of 10,260 points and despite breaching it intraday it failed to sustain itself only to close in the red.

The Stochastic Oscillator on the daily chart is gradually approaching the overbought region and any further rise would render it overbought once again. Moreover the RSI is also gradually approaching its overbought region.

Taking the above factors into consideration, any upside should be capitalized upon to sell.

The first support is at 10,174 points and the second support is at 10,095 points. The first resistance is at 10,294 points and the second resistance is at 10,365 points.

KSE-100 Index: Indicators Gradually Approaching The Overbought Region

The Keystone for July 21, 2010

First support 10,181 points, second support 10,094 points; First resistance 10,320 points, second resistance 10,389 points

Analysis and Overview:

The index opened positive and after touching its day's high remained range-bound throughout the day to close in the green. Volumes increased by 19.15% and stood at 80.78 mln. The index is facing strong resistance at 10,260 points and despite breaching it intraday, failed to sustain itself only to close just below it. Moreover the uptrend seems to be losing momentum.

The Stochastic Oscillator on the daily chart has reversed and has generated a buy signal, thus leaving the cycle incomplete. Moreover any further rise would render it overbought once again. Moreover the RSI is also gradually approaching its overbought region.

Taking the above factors into consideration, any upside should be capitalized upon to sell.

The first support is at 10,181 points and the second support is at 10,094 points. The first resistance is at 10,320 points and the second resistance is at 10,389 points

KSE-100 Index: Experiencing Congestion Around Critical Resistance At 10,260 Points

The Keystone for July 20, 2010

First support 10,138 points, second support 10,068 points; First resistance 10,269 points, second resistance 10,340 points

The index opened positive and remained range-bound throughout the day to close marginally above the open. Volumes increased by 21.46% and stood at 67.79 mln. The index is facing strong resistance at 10,260 points and the formation created by it is a "Shooting Star" which is indicative of a top.

The Stochastic Oscillator on the daily chart maintains its sell signal, which makes the formation a bearish divergence. On the weekly chart the Stochastic Oscillator is starting to stall and is on the verge of generating a sell signal in the overbought region. Moreover the RSI continues to hover around its resistance trendline (blue line, lower portion) and is just below the overbought region.

Taking the above factors into consideration, upside seems limited. Hence any upside should be capitalized upon to sell.

The first support is at 10,138 points and the second support is at 10,068 points. The first resistance is at 10,269 points and the second resistance is at 10,340 poi

KSE-100 Index: Experiencing Congestion Around Critical Resistance At 10,260 Points

The Keystone for July 20, 2010

First support 10,138 points, second support 10,068 points; First resistance 10,269 points, second resistance 10,340 points

The index opened positive and remained range-bound throughout the day to close marginally above the open. Volumes increased by 21.46% and stood at 67.79 mln. The index is facing strong resistance at 10,260 points and the formation created by it is a "Shooting Star" which is indicative of a top.

The Stochastic Oscillator on the daily chart maintains its sell signal, which makes the formation a bearish divergence. On the weekly chart the Stochastic Oscillator is starting to stall and is on the verge of generating a sell signal in the overbought region. Moreover the RSI continues to hover around its resistance trendline (blue line, lower portion) and is just below the overbought region.

Taking the above factors into consideration, upside seems limited. Hence any upside should be capitalized upon to sell.

The first support is at 10,138 points and the second support is at 10,068 points. The first resistance is at 10,269 points and the second resistance is at 10,340 points.

KSE-100 Index: Experiencing Congestion Around Critical Resistance At 10,260 Points

The Keystone for July 20, 2010

First support 10,138 points, second support 10,068 points; First resistance 10,269 points, second resistance 10,340 points

The index opened positive and remained range-bound throughout the day to close marginally above the open. Volumes increased by 21.46% and stood at 67.79 mln. The index is facing strong resistance at 10,260 points and the formation created by it is a "Shooting Star" which is indicative of a top.

The Stochastic Oscillator on the daily chart maintains its sell signal, which makes the formation a bearish divergence. On the weekly chart the Stochastic Oscillator is starting to stall and is on the verge of generating a sell signal in the overbought region. Moreover the RSI continues to hover around its resistance trendline (blue line, lower portion) and is just below the overbought region.

Taking the above factors into consideration, upside seems limited. Hence any upside should be capitalized upon to sell.

The first support is at 10,138 points and the second support is at 10,068 points. The first resistance is at 10,269 points and the second resistance is at 10,340 points.

KSE-100 Index: Experiencing Congestion Around Critical Resistance At 10,260 Points

The Keystone for July 20, 2010

First support 10,138 points, second support 10,068 points; First resistance 10,269 points, second resistance 10,340 points

The index opened positive and remained range-bound throughout the day to close marginally above the open. Volumes increased by 21.46% and stood at 67.79 mln. The index is facing strong resistance at 10,260 points and the formation created by it is a "Shooting Star" which is indicative of a top.

The Stochastic Oscillator on the daily chart maintains its sell signal, which makes the formation a bearish divergence. On the weekly chart the Stochastic Oscillator is starting to stall and is on the verge of generating a sell signal in the overbought region. Moreover the RSI continues to hover around its resistance trendline (blue line, lower portion) and is just below the overbought region.

Taking the above factors into consideration, upside seems limited. Hence any upside should be capitalized upon to sell.

The first support is at 10,138 points and the second support is at 10,068 points. The first resistance is at 10,269 points and the second resistance is at 10,340 points.

KSE-100 Index: Formation And Volumes Indicative Of An Adjustment To Thursday's Candlestick

The Keystone for July 19, 2010

First support 10,087 points, second support 10,020 points; First resistance 10,202 points, second resistance 10,267 points

Analysis and Overview:

The index opened positive and remained range-bound throughout most of the day. However after touching its day's low, took to a sharp recovery to close in the green. Volumes declined by 39.13% and stood at 55.70 mln. The index's formation serves as an adjustment to the overall trend. This is also confirmed by the fact that the index's volumes were significantly lower and also that the index registered a lower high and a lower low. Critical resistance stands at 10,260 points which is 50% retracement from the index's all-time high of 15,739 points and its post-floor low of 4,782 points.

The Stochastic Oscillator on the daily chart has maintains its sell signal, which makes Friday's formation a bearish divergence. On the weekly chart the Stochastic Oscillator is starting to stall in the overbought region. Moreover the RSI continues to hover around its resistance trendline (blue line lower portion) and is just below the overbought region.

Taking the above factors into consideration, upside seems limited. Hence any upside should be capitalized upon to sell.

The first support is at 10,087 points and the second support is at 10,020 points. The first resistance is at 10,202 points and the second resistance is at 10,267 points

KSE-100 Index: Reaction From Critical Resistance Resulting In A Formation Which Indicates A Top

The Keystone for July 16, 2010

First support 10,016 points, second support 9,907 points; First resistance 10,150 points, second resistance 10,217 points

Analysis and Overview:

The index opened positive and after initially touching its day's high took, to a downtrend to close in the red. Volumes declined by 24.38% and stood at 91.70 mln. The index reacted from its critical resistance of 10,260 points which is 50% retracement from the index's all-time high of 15,739 points and its post-floor low of 4,782 points. Moreover the formation created in the process is an Engulfing Bearish formation which in an uptrend is a strong bearish formation and indicates a top.

The Stochastic Oscillator on the daily chart has now generated a sell signal in the overbought region, while the RSI has shown weakness while failing to sustain above the resistance trendline above which it had given a breakout on 14th. This adds credence to the view that the index has created a top and is likely to take to a downtrend.

The first support is at 10,016 points and the second support is at 9,907 points. The first resistance is at 10,150 points and the second resistance is at 10,217 points.

KSE-100 Index: Inertial Momentum To Continue; Formation Suggests Index Nearing Peak

The Keystone for July 15, 2010

First support 10,131 points, second support 10,065 points; first resistance 10,238 points, second resistance 10,304 points

Analysis and Overview:

The index opened positive and after initially witnessing profit-taking, recovered to close in the green. Volumes increased by 78.55% and stood at 121.26 mln. The index's inertial momentum is leading to the index maintaining its uptrend however the formation created suggests that the index is nearing its peak.

The Stochastic Oscillator on the daily chart is on the verge of generating a sell signal in the overbought region, while the RSI is approaching the overbought region. Also the index has closed above the upper Bollinger Band which makes it increasingly prone to correction.

The first support is at 10,131 points and the second support is at 10,065 points. The first resistance is at 10,238 points and the second resistance is at 10,304 points.

KSE-100 Index: Inertial Momentum To Continue; Indicators Maintain Overbought Stance

The Keystone for July 14, 2010

First support 10,073 points, second support 10,016 points; First resistance 10,189 points, second resistance 10,283 points

Analysis and Overview:

The index opened positive and maintained a steady uptrend to close well in the green. Volumes showed a marginal increase of 4.97% and stood at 67.92 mln. The index managed to close above the 100-DMA, however the uptrend is on the back of inertial momentum.

The Stochastic Oscillator on the daily chart maintains its overbought stance and could potentially generate a sell signal. Moreover the RSI is approaching the overbought region. Also the index has closed above the upper Bollinger Band which could clip gains.

The first support is at 10,073 points and the second support is at 10,016 points. The first resistance is at 10,189 points and the second resistance is at 10,283 points.

KSE-100 Index: Inertial Momentum To Continue; Indicators Maintain Overbought Stance

The Keystone for July 14, 2010

First support 10,073 points, second support 10,016 points; First resistance 10,189 points, second resistance 10,283 points

Analysis and Overview:

The index opened positive and maintained a steady uptrend to close well in the green. Volumes showed a marginal increase of 4.97% and stood at 67.92 mln. The index managed to close above the 100-DMA, however the uptrend is on the back of inertial momentum.

The Stochastic Oscillator on the daily chart maintains its overbought stance and could potentially generate a sell signal. Moreover the RSI is approaching the overbought region. Also the index has closed above the upper Bollinger Band which could clip gains.

The first support is at 10,073 points and the second support is at 10,016 points. The first resistance is at 10,189 points and the second resistance is at 10,283 points

KSE-100 Index: Inertial Momentum To Continue; Indicators Maintain Overbought Stance

The Keystone for July 14, 2010

First support 10,073 points, second support 10,016 points; First resistance 10,189 points, second resistance 10,283 points

Analysis and Overview:

The index opened positive and maintained a steady uptrend to close well in the green. Volumes showed a marginal increase of 4.97% and stood at 67.92 mln. The index managed to close above the 100-DMA, however the uptrend is on the back of inertial momentum.

The Stochastic Oscillator on the daily chart maintains its overbought stance and could potentially generate a sell signal. Moreover the RSI is approaching the overbought region. Also the index has closed above the upper Bollinger Band which could clip gains.

The first support is at 10,073 points and the second support is at 10,016 points. The first resistance is at 10,189 points and the second resistance is at 10,283 points

KSE-100 Index: Formation Suggests Peak; Indicators Stalling In The Overbought Region

The Keystone for July 13, 2010

First support 9,930 points, second support 9,853 points; First resistance 10,038 points, second resistance 10,107 points

The index opened marginally positive and after touching its day's high, took to a corrective trend momentarily dipping in the red only to recover and close marginally in the green. Volumes declined by 37.03% and stood at 64.70 mln. The index has created a "Doji Star" formation which in an uptrend is indicative of a top. Moreover the index's 100-DMA created strong resistance thereby making it a strong resistance level.

The Stochastic Oscillator on the daily chart has leveled off in the overbought region and could potentially generate a sell signal. Moreover the RSI took resistance from its critical resistance trendline (blue trendline, lower portion).

The index's formation along with the indicators now turning bearish, upside seems capped. Hence any upside should be capitalized upon to sell.

The first support is at 9,930 points and the second support is at 9,853 points. The first resistance is at 10,038 points and the second resistance is at 10,107 points

KSE-100 Index: Formation Suggests Peak; Indicators Stalling In The Overbought Region

The Keystone for July 13, 2010

First support 9,930 points, second support 9,853 points; First resistance 10,038 points, second resistance 10,107 points

The index opened marginally positive and after touching its day's high, took to a corrective trend momentarily dipping in the red only to recover and close marginally in the green. Volumes declined by 37.03% and stood at 64.70 mln. The index has created a "Doji Star" formation which in an uptrend is indicative of a top. Moreover the index's 100-DMA created strong resistance thereby making it a strong resistance level.

The Stochastic Oscillator on the daily chart has leveled off in the overbought region and could potentially generate a sell signal. Moreover the RSI took resistance from its critical resistance trendline (blue trendline, lower portion).

The index's formation along with the indicators now turning bearish, upside seems capped. Hence any upside should be capitalized upon to sell.

The first support is at 9,930 points and the second support is at 9,853 points. The first resistance is at 10,038 points and the second resistance is at 10,107 points.

KSE-100 Index: Recovery Phase Potentially Nearing Completion; Daily And Weekly Indicators Now Overbought

The Keystone for July 12, 2010

First support 9,907 points, second support 9,833 points; First resistance 10,026 points, second resistance 10,121 points

The index opened marginally negative but soon recovered and maintained a steady uptrend to close well into the green. Volumes increased by 31.83% and stood at 102.75 mln. Average weekly volumes marginally increased by 6.49% and stood at 55 mln, while the index gained 266 points. The index on the daily chart managed to sustain above its critical resistance of 9,865 points only to close just below the 100-DMA. Moreover on the weekly chart the index managed to close above its 30-week average.

The Stochastic Oscillator on the daily chart has now entered the overbought region, which is also the case on the weekly chart. The RSI on the daily chart is approaching its critical resistance trendline (blue trendline, lower portion), while on the weekly chart has shown marginal improvement.

The above factors suggests that the recovery phase is nearing completion as the Stochastic Oscillator on the daily and weekly chart has now become overbought and the rally was primarily triggered by the Stochastic Oscillator generating a buy signal on the daily chart.

The first support is at 9,907 points and the second support is at 9,833 points. The first resistance is at 10,026 points and the second resistance is at 10,121 points.

The Keystone: KSE-100 Index: Recovery To Continue As Levels Sustain Above Key Moving Averages

The Keystone for July 09, 2010

First support 9,798 points, second support 9,711 points; First resistance 9,923 points, second resistance 9,983 points

The index opened positive and after touching its day's high took to a corrective trend momentarily dipping in the red only to recover and close in the green. Volumes improved by 54.18% and stood at 77.94 mln. The index managed to sustain above the 50-DMA and 200-DMA however closed just shy of its critical resistance at 9,865 points. The next critical resistance stands at 9,971 points around which lies the 100-DMA.

The Stochastic Oscillator on the daily chart maintains its uptrend as well as its buy signal, while the RSI on the daily chart too has shown improvement however is approaching its critical resistance trendline (blue trendline, lower portion).

The alarming thing is that the index's formation could potentially be one of distribution as the shallow body was created with higher volumes. For now the recovery phase is likely to continue.

The first support is at 9,798 points and the second support is at 9,711 points. The first resistance is at 9,923 points and the second resistance is at 9,983 points.

The Keystone: KSE-100 Index: Recovery To Continue As Levels Sustain Above Key Moving Averages

The Keystone for July 09, 2010

First support 9,798 points, second support 9,711 points; First resistance 9,923 points, second resistance 9,983 points

The index opened positive and after touching its day's high took to a corrective trend momentarily dipping in the red only to recover and close in the green. Volumes improved by 54.18% and stood at 77.94 mln. The index managed to sustain above the 50-DMA and 200-DMA however closed just shy of its critical resistance at 9,865 points. The next critical resistance stands at 9,971 points around which lies the 100-DMA.

The Stochastic Oscillator on the daily chart maintains its uptrend as well as its buy signal, while the RSI on the daily chart too has shown improvement however is approaching its critical resistance trendline (blue trendline, lower portion).

The alarming thing is that the index's formation could potentially be one of distribution as the shallow body was created with higher volumes. For now the recovery phase is likely to continue.

The first support is at 9,798 points and the second support is at 9,711 points. The first resistance is at 9,923 points and the second resistance is at 9,983 points.

KSE-100 Index: Closing Above 30-DMA And 200-DMA; Critical Resistance At 9,865 Points

The Keystone for July 08, 2010

First support 9,746 points, second support 9,659 points; First resistance 9,854 points, second resistance 9,941 points

Analysis and Overview:

The index opened flat and after momentarily dipping in the red, took to a steady uptrend to close well positive. Volumes continued to show improvement and stood at 50.55 mln. The index took support from the 30-DMA and managed to close above the 200-DMA. This suggests that the recovery is likely to continue with critical resistance placed at 9,865 points.

The Stochastic Oscillator on the daily chart has reversed and has now generated a buy signal, while the RSI on the daily chart too has shown improvement. However trend forecasting indicators maintain their bearish stance for the index.

With the index closing managing to close above its key moving averages, the recovery could continue. The test is to see if the index sustains above the 200-DMA while facing critical resistance at 9,865 points.

The first support is at 9,746 points and the second support is at 9,659 points. The first resistance is at 9,854 points and the second resistance is at 9,941 points.

KSE-100 Index: Closing Above 30-DMA And 200-DMA; Critical Resistance At 9,865 Points

The Keystone for July 08, 2010

First support 9,746 points, second support 9,659 points; First resistance 9,854 points, second resistance 9,941 points

Analysis and Overview:

The index opened flat and after momentarily dipping in the red, took to a steady uptrend to close well positive. Volumes continued to show improvement and stood at 50.55 mln. The index took support from the 30-DMA and managed to close above the 200-DMA. This suggests that the recovery is likely to continue with critical resistance placed at 9,865 points.

The Stochastic Oscillator on the daily chart has reversed and has now generated a buy signal, while the RSI on the daily chart too has shown improvement. However trend forecasting indicators maintain their bearish stance for the index.

With the index closing managing to close above its key moving averages, the recovery could continue. The test is to see if the index sustains above the 200-DMA while facing critical resistance at 9,865 points.

The first support is at 9,746 points and the second support is at 9,659 points. The first resistance is at 9,854 points and the second resistance is at 9,941 points.