Morning Market Brief 3rd Sep. 2020

The Benchmark KSE100 index have succeeded in setting its base above 41,000pts during last two trading sessions but it's still moving in caution zone because now it's being capped by a descending trend line on daily and weekly charts therefore it's recommended to stay cautious until index succeeds in closing above this trend line which would try to cap index below 42,160pts. Mean while index have posted new high as compared to previous week but neither hourly nor daily MACD have followed this trend and these both are still moving below their previous levels which is indicating a caution call because if these both would not succeed in amending their previous values then it would be considered a selling on strength call. Therefore daily closing above 42,160pts is becoming mandatory for bullish continuity because if index would start losing strength below this level then daily and hourly MACD would try to drag index into bearish zone and short term trend would change its direction. Initially it's expected that index would face resistances between 42,000pts-42,160pts and breakout above that region would call for 42,500pts while on flipside in case of facing rejection from its resistant regions index would try to find ground above 41,300pts and 41,000pts. Index would remain into bullish zone until it would not succeed in closing below 40,750pts. It's recommended to post trailing stop loss on existing long positions and avoid initiating new short positions until index gave a reversal sign.