Bearish divergence on the RSI; stay on sidelines
The KSE-100 index closed at the 15,254 level, a gain of 102 points. Volumes improved by 10% and were recorded at 224mn shares versus 204mn shares traded previously. The current pattern suggests that the index may consolidate at current levels, however, a short term correction is due. The RSI has created a bearish divergence and the Stochastic Oscillator has continued to decline, supporting the above view. At current levels, we believe investors should stay on the sidelines. The supports are at 15,187 and 15,157 level, while the index will face resistance at 15,321 and 15,351 level, respectively.