Wednesday, 18 July 2012

Karachi Stock Exchange Trend Score


KSE-100 Index (Last: 14445.28, up 60.70 point)

The Index is showing uptrend on all three counts (long, medium and short term), however, the only wrinkle on the face is lack of velocity on the upside as the Index remained trapped in a narrow range of 14500-14300. We maintain our positive stance on the Index. Major support prices are 14300-14000.

Out of 28 stocks that we cover, 20 are showing an uptrend while 8 are in the downtrend and 5 of them are showing overbought position (see Trend Score table below for details). HBL is on the verge of initiating a long term uptrend as the 2 weeks moving average (Rs 112.90) is approaching the 52 weeks moving average (Rs 113.00). The long term trend of ICI is down, however, after the recent rise, the stock is showing downtrend reversing flag. 

Trading strategy: Sell on rise in stocks with negative Trend Score. Buy on dips in the stock with positive Trend Score. Also keep a close watch on the “Trend Score Change” column to get a clue on the velocity the trend. To understand better please read the “Trend Score Guide”.


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