KSE-100 Index: Stalling Around Recent Peak; Formation And Indicators Suggests Uptrend Nearing Completion

The Keystone for June 28, 2010

First support 9,727 points, second support 9,664 points; First resistance 9,848 points, second resistance 9,915 points

The index opened positive and after touching its day's high, took to a steady downtrend however after bottoming out around its day's low, it recovered to close marginally in the green. Volumes increased by 9.20% and stood at 89.16 mln. Average weekly volumes declined by 28.41% and stood at 78 mln, while the index gained 151 points. The index on the daily chart is stalling around its recent peak while its formation suggests that the uptrend is nearing completion.

The Stochastic Oscillator on the daily chart is almost overbought, while on the weekly chart is gradually approaching the overbought region. The RSI on the daily chart has started to stall, while on the weekly chart has shown marginal improvement. Moreover the 30-DMA has cut the 200-DMA from above. This is bearish.

The first support is at 9,727 points and the second support is at 9,664 points. The first resistance is at 9,848 points and the second resistance is at 9,915 points