Karachi 100 (KSE)

FAQ's When this market get reverse , is this a crash? Are we going towards 2008? Every stock market has these kind of moves which is called deep correction in a bull trend where weekly and daily bearish trend couldn't Change the long term bullish trend on monthly chart In last five years index started to move from 18,000 and went up to 53,000. 10,000 point correction till date, still unable to change the monthly bullish trend of psx 100 index, however after breakage of two major supports one reversal and breakage of 50,000 after posting 53,000 second breakage of 46,000 and on monthly charts next major support exists near 39,700-41,500 which is as important as it was strong at 46,000 before breakage where index went up to 53,000 after corrective move from 50,000 to 46,000 and then back to 53,000. Potential chances for reverse once index hit the next major key supporting zone which exists near 39,700-41,500. From there we could see kind of sustainability and as per trend line study it's the 1st supporting level on monthly charts or breakage of bearish trend channel on weekly and daily charts before hitting the major support, which is perfectly managing by index till date and the top exist on and above 46,300. Growth of almost 35,000 points and correction of 10-13,000 points still unable to change monthly bullish trend of 100 index. The major and most important suggested supporting zone mentioned above is the key area for long term investors from there we could witness consolidation and strong move but breakage below 38,500 could push down index further low which is looking difficult for the time being. political and economic uncertainty keep the sessions volatile in the near future. International stocks like Dow jones SP500 are also in extreme overbought conditions and could go for deep correction any day. Regards and happy trading ZBZ