Technical View for the 3rd Week of June by SafelyInvest

By Khalid Saifuddin
June, 21st, 2009 3:00 am
Technical Outlook:
Expect the BULLISH trend now
Opportunities do not come to those who wait;
They are captured by those who attack.
Off course this is the time to buy most of the selected script because
the range of stop loss here is very low and the target journey is long enough
to cover at least one month return in few sessions.
I am still convinced on my above said statement.
Trust me the Bullish trend is about to begin, The past week we found some buying power in foreign investors portfolio and Friday was awesome though the market closed in negative, but I will still call it honored my Friday call of bullish.
Market closed on one of the strongest support level on Friday, now the Bulls only required 26 to 60 positive points for Monday closing.
If you look at the past 7 weeks market remain under the range of 7320 and 6870, and now squeezing range of the market is indicating the big breakout.
Any negative closing on Monday will drag market back into mild bearish trend.
If I conclude the behavior of last 2 months, the KSE got the more pressure dragging market down, and bulls were weaker then the Bears, I see this third time in 2 months bulls are trying to take control of the market. Well I am pretty much optimistic this time for Bulls. Bulls are required to cross the 7150 level with Volume and then you will see the dancing bulls in the market.
Market is currently experiencing very low volatility; I see the possibility of increasing volatility and volumes with positive breakout in prices for future.

Recommendations: Strongly condemned short selling, appreciate buy
in most of the scrips. For further details on script analysis please contact
Saif @ 0345-276 8680 or safelyinvest@ gmail.com

Key Levels
Resistance
7085 – 7095
7133
7145
7158
7192
Support
7025 – 7035
6998
6955
6932
6876
Foreign Investors Portfolio
Status for June 15th -19th, 2009
Gross Buy
Rs 1,721,302,354
Gross Sell
Rs 1,615,412,978
Net Buy/(Sell)
Rs 105,889,378
USD$ 1,315,396
Source: NCCPL

Market Down by 0.24%

Recap: KSE-100 for Past week

Declining T-bill yields in conjunction with media reports that the discount rate would be reduced in the next Monetary Policy led to widespread bullish sentiment on Wednesday. Investors were still not sure about the replacement of CVT with FED on stock market. Law and order situation and expansion on Operation Rah-e-Rast was also having some negative impacts on market.
As we indicated last week about the beginning of bullish trend, but the post-budget discussions and negative interpretation of the budget intersected the rising local interest. Foreign buying on Friday certifies the bullish beginning in the market. Although the investors confidence was shattered but they still holding positions in the market, and prepared to be a part of bullish rally
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Disclaimer
This commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. We accept no liability whatsoever for any loss arising from any use of these levels. However the author DOES NOT GUARANTEES the accuracy of information provided on this report and is NOT RESPONSIBLE FOR ANY ERRORS AND/OR OMISSIONS.