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.

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 Below 30-DMA And 200-DMA Suggests Further Downside Risk

The Keystone for July 07, 2010

First support 9,512 points, second support 9,426 points; First resistance 9,631 points, second resistance 9,704 points

Analysis and Overview:

The index opened flat and after touching its day's high, took to a steady downtrend however witnessed a modest recovery only to close in the red. Volumes improved and stood at just 29.78 mln. The index took resistance from its 200-DMA only to close below the 30-DMA. This is bearish and suggests further downside risk.

The Stochastic Oscillator on the daily chart maintains its sell signal, while the RSI on the daily chart has started to show weakness. Also, trend forecasting indicators have now turned bearish on the index with the MACD taking to a downtrend and on the verge of generating a sell signal.

With the index closing below its key moving averages and with the indicators generating sell signals, the trend has once again turned bearish.

The first support is at 9,512 points and the second support is at 9,426 points. The first resistance is at 9,631 points and the second resistance is at 9,704 points

KSE-100 Index: Closing Below 30-DMA And 200-DMA Suggests Further Downside Risk

The Keystone for July 07, 2010

First support 9,512 points, second support 9,426 points; First resistance 9,631 points, second resistance 9,704 points

Analysis and Overview:

The index opened flat and after touching its day's high, took to a steady downtrend however witnessed a modest recovery only to close in the red. Volumes improved and stood at just 29.78 mln. The index took resistance from its 200-DMA only to close below the 30-DMA. This is bearish and suggests further downside risk.

The Stochastic Oscillator on the daily chart maintains its sell signal, while the RSI on the daily chart has started to show weakness. Also, trend forecasting indicators have now turned bearish on the index with the MACD taking to a downtrend and on the verge of generating a sell signal.

With the index closing below its key moving averages and with the indicators generating sell signals, the trend has once again turned bearish.

The first support is at 9,512 points and the second support is at 9,426 points. The first resistance is at 9,631 points and the second resistance is at 9,704 points

KSE-100 Index: Formation Suggests Breach Of 200-DMA Likely; Weekly Formation Indicative Of Top

The Keystone for July 05, 2010

First support 9,636 points, second support 9,562 points; First resistance 9,750 points, second resistance 9,803 points

Analysis and Overview:

The index opened positive and after touching its day's high, took to a steady downtrend to close in the red. Volumes were dismal at just 22.47 mln. Average weekly volumes declined to 51.78 mln, down by 33.71%. Moreover the index closed down by 99 points. On the weekly chart, the index's formation is indicative of a top as it took resistance from the 30-week average as well as its critical resistance of 9,865 points to close in the red. Additionally the index's formation on the daily chart suggests that the index is likely to breach the 200-DMA

The Stochastic Oscillator on the daily chart maintains its sell signal, while on the weekly char it is approaching the overbought region. Moreover the RSI on the daily chart has started to stall as well. Also, trend forecasting indicators have now turned bearish on the index.

As highlighted above, the index's formation on the daily and weekly chart is bearish and is indicative of a top. Hence any upside should be capitalized upon to sell.

The first support is at 9,636 points and the second support is at 9,562 points. The first resistance is at 9,750 points and the second resistance is at 9,803 points

KSE-100 Index: Formation Suggests Breach Of 200-DMA Likely; Weekly Formation Indicative Of Top

The Keystone for July 05, 2010

First support 9,636 points, second support 9,562 points; First resistance 9,750 points, second resistance 9,803 points

Analysis and Overview:

The index opened positive and after touching its day's high, took to a steady downtrend to close in the red. Volumes were dismal at just 22.47 mln. Average weekly volumes declined to 51.78 mln, down by 33.71%. Moreover the index closed down by 99 points. On the weekly chart, the index's formation is indicative of a top as it took resistance from the 30-week average as well as its critical resistance of 9,865 points to close in the red. Additionally the index's formation on the daily chart suggests that the index is likely to breach the 200-DMA

The Stochastic Oscillator on the daily chart maintains its sell signal, while on the weekly char it is approaching the overbought region. Moreover the RSI on the daily chart has started to stall as well. Also, trend forecasting indicators have now turned bearish on the index.

As highlighted above, the index's formation on the daily and weekly chart is bearish and is indicative of a top. Hence any upside should be capitalized upon to sell.

The first support is at 9,636 points and the second support is at 9,562 points. The first resistance is at 9,750 points and the second resistance is at 9,803 points.

KSE-100 Index: Lowest Volume Since Floor Removal; Bearish Cluster Of Candlesticks Created

The Keystone for July 02, 2010

First support 9,668 points, second support 9,565 points; First resistance 9,796 points, second resistance 9,860 points

Analysis and Overview:

The index opened positive and after touching its day's high, took to a steady downtrend only to recover to close marginally below the open. Volumes were the lowest since floor removal and stood at just 20.83 mln. The index's cluster of candlesticks is a bearish one as despite three consecutive positive closings it failed to close above Monday's open, which was 9,790 points. Moreover the quarterly formation is a "Dark Cloud Cover" formation which augments the view of a top.

The Stochastic Oscillator on the daily chart maintains its sell signal, which makes the formation a bearish divergence. Moreover the RSI on the daily chart has started to stall as well. Also, trend forecasting indicators have now turned bearish on the index.

As highlighted above, the index has been witnessing an adjustment phase to Monday's bearish formation and the cluster of candlesticks created thus far is bearish. This is bearish and any upside should be taken advantage of to sell. Critical resistance stands at 9,865 points.

The first support is at 9,668 points and the second support is at 9,565 points. The first resistance is at 9,796 points and the second resistance is at 9,860 points.