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