ASI Weekly Report - 15.02.2019

ASI is under pressure, and the trend failed to hold the triple bottom at 5921 points. It is now exposing the index to break below 5900, and test 5869 points. Any break there would test 5831 points. It is fair to see how the index line is behaving between this zone of 5831 and 5869 points. At present there is 1 thing that would help the bulls. That is the descending line in green that had acted as a pivot for more than 14 times. If it is going to help the ASI, then its pivot point is around 5909. That is the present level. Based on the overall bearish momentum in the Market it is hard to defend that level, but worth keeping that in mind.

There was a major change in the weekly turnover with 5.8Bn reported during the week against 1.9Bn of the previous week. Mostly Locals Collecting what the Foreigners sold, largest been JKH. Number of Trades was 14,677 against 13,248 of the previous week. Most common and clear sign that was visible was Selling amidst Large volumes, in the normal board as well as in Crossings. This is not Bullish at all. The counters with more than 100 trades were 35, slightly higher over the 31 of last week. 6 of those were over 300 trades, and 2 were over 600 trades.  Those 2 were AAIC and KAPI.

KAPI gave the traders another loud warning of how to trade with a discipline than rumours and stories. But will the traders learn? History has shown that some will never ever learn. Are you one of those traders who doesn't want to learn? Why? KAPI is halted until the company clarifies what the CSE is asking them.

If you aren't a Market Maker, then you must learn to handle your trades.

MBSL Weekly Chart

We gave a trade idea on MBSL in our last Weekly Report. But the counter looked bearish throughout this week, triggering the upper point of the stop loss level of 9/90. This closed at 10/00 which is a psychological price level, but vulnerable to be bearish. Hence we may have to stop if we see 9/90 and 9/80 on a closing basis. We are now watching the low of the previous week which was 9/60.

We are moving to a new week with a bearish bias. Therefore we need to wait with the trades that we have already entered into. Let's watch how the market is going to behave during the week.

Nevertheless I wish that you will gather strength to face the challenges within the week and come out on top.