KASB Securities Limited and Economics Research- The Keystone – Equities

Karachi, July 09, 2012 (PPI-OT): KSE-100: KSE-100: On the verge of giving a breakout above critical resistance

According to KASB Securities Limited,

• The index registered a higher high and a higher low with improved volumes to close at a two month high. Moreover it is on the verge of giving a breakout above its critical level of 14,312 points.

• The Stochastic Oscillator has leveled off and is about to generate a buy signal.

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

Analysis and Overview:
The index opened flat and after initially dipping in the red, recovered and took to a steady uptrend to close well positive. Volume registered an impressive gain of 143% and stood at 94 million. The index registered a higher high and a higher low with improved volumes to close at a two month high. Moreover it is on the verge of giving a breakout above its critical level of 14,312 points. This seems likely and the index has finally cleared its 10-week moving average on the weekly chart, after it had been consolidating below it.

The Stochastic Oscillator has leveled off and is about to generate a buy signal while the RSI has resumed its uptrend while maintaining its buy signal. Moreover the MACD continues to improve and maintains its buy signal as well.

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

The first support is at 14,228 points and the second support is at 14,133 points. The first resistance is at 14,382 points and the second resistance is at 14,477 points.