KSE-100 Index: 200-DMA Could Create Support In The Short-Term

The Keystone for May 25, 2010

First support 9,623 points, second support 9,516 points; first resistance 9,743 points, second resistance 9,830 points

The index opened flat and remained under pressure throughout the session to close well into the red. Volumes declined marginally by 1.43% and stood at 73.67 mln. The index maintained its downtrend and registered a lower high and a lower low.

The Stochastic Oscillator on the daily though oversold is in a failure swing, while on the weekly and monthly chart maintains its sell signal. Moreover the RSI on the daily chart has now become oversold. However, the MACD maintains its downtrend as well as its sell signal on the daily and weekly chart.

However the only redeeming factor is that the index's 200-DMA looms below, which could potentially create support in the short-term.

The first support is at 9,623 points and the second support is at 9,516 points. The first resistance is at 9,743 points and the second resistance is at 9,830 points.