KASB Securities Limited and Economics Research- The Keystone – Equities

Karachi, July 04, 2012 (PPI-OT): KSE-100: KSE-100: Closing above recent peak is a medium term bullish signal

According to KASB Securities Limited,

• The index registered a higher high and a higher low while sustaining above the 50- DMA as well as closing above its recent peak of 14,168 points. This is a medium term bullish signal and suggests further upside.

• The Stochastic Oscillator maintains its buy signal while the RSI and MACD continue to improve and maintain their respective buy signals as well.

• KASB Securities Limited maintains KASB Securities Limited’s bullish stance on the market.

Analysis and Overview:
The index opened positive however after initially dipping in the red it recovered and remained strong throughout the remainder of the day to close in the green. Volumes improved by 12% and stood at 119million. The index registered a higher high and a higher low while sustaining above the 50-DMA as well as closing above its recent peak of 14,168 points. This is a medium term bullish signal and suggests further upside. What remains to be seen is if the index closes above its critical resistance level of 14,312 points.

The Stochastic Oscillator maintains its buy signal while the RSI and MACD continue to improve and maintain their respective buy signals as well.

KASB Securities Limited maintains KASB Securities Limited’s bullish stance on the market.

The first support is at 14,124 points and the second support is at 14,051 points. The first resistance is at 14,279 points and the second resistance is at 14,360 points.