Karachi, May 09, 2012 (PPI-OT): Evening Doji Star —Caution Snapping a four-day winning streak, the benchmark KSE eased 0.71%, or 104.01 points yesterday to settle at 14645.85 level, with a turnover of 176.83mn shares against 174.86mn shares exchanged on Monday.
According to AKD Securities, candlesticks have indicated a reversal in minute uptrend by way of an Evening Doji Star pattern. Immediate residency below 14648~14706 could result in weakness towards 14407. Sustained pressure below there would eye deeper levels in 14314~14222 area. Conversely, the index’s ability to surpass 14735~14755 would suggest continuation towards an important resistance around 14984. Short-term traders may consider a sell stance in 14591~14648 with risk above 14735.
Weekly overbought momentum and convergence of two important trendlines today (see Monday’s issue) are concerns for prolonged rally. Therefore, investors who are following the general up-trend are suggested to avoid committing aggressive long positions.