The KSE-100 Index has surged out of its consolidation phase, closing at 118,442 with a robust gain of 2,906 points (+2.52%). This breakout has propelled the index beyond its previous trading range, as it now tests higher resistance levels. Trading activity also saw a significant uptick, with volumes rising to 1,250 million shares, reflecting renewed investor confidence. The index continues to hold firmly above its 10-week EMA (113,678), underscoring the prevailing bullish momentum.
From a technical perspective, the outlook remains positive, though some caution is advised. The RSI (Relative Strength Index) is currently at 74, entering overbought territory, which could hint at potential short-term profit-taking. Despite this, the recent breakout suggests further upside potential, with the next target zone likely in the 122,000-125,000 range. On the flip side, a failure to maintain levels above 116,000 could trigger a pullback, potentially retesting lower support levels near 114,000-112,000.
On the daily charts, the market has demonstrated a strong upward trend over the past week, successfully breaking through its key resistance zone of 117,000–118,500 on increased trading volume. It closed at a record high of 118,442, signaling the likely completion of its time correction and the beginning of a new bullish phase. This breakout above the consolidation range has shifted the broader trend from neutral to positive.
The RSI (Relative Strength Index) has improved to 69, further confirming the resumption of bullish momentum. Moving forward, the market is expected to maintain its positive trajectory, with potential upside targets based on a measured move ranging from 125,000 to 130,000. Immediate resistance is anticipated in the 121,000–122,500 zone. On the downside, support levels are expected between 117,000 and 115,800, with 110,000 serving as a critical support level in case of a pullback. Investors should monitor these key levels to assess the market's near-term direction.