Karachi Stock Exchange-100 Index testing resistance

Karachi Stock Exchange-100 index seems to be respecting the trading range we had defined earlier in our post KSE-100: A New Trading Range between 12,100 and 12,550. The KSE-100 index touched a high of 12,543 on Friday, July 22, 2011 but ran in to eager sellers at that level. The index retreated to close at 12,476.

Overall, volumes reflect that the Karachi Stock Exchange-100 index will continue to face stiff resistance near 12,570 and ultimately a close above that level seems difficult.

Nonetheless, a close above 12,570 we will be keenly watching for and should keep one interested in the bull side.

KSE-100

1st Support 12,450

2nd Support 12,420

1st Resistance 12,520

2nd Resistance 12,570