Monday, November 15, 2010

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

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