*KSE-100 Index: Bearish Momentum Intensifies, Short-Term Bounce Likely* *🔹 Key Levels to Watch:* - Immediate Support: 109,847 (Dec. 20 gap support) - Critical Support: 109,405 (near-term low) - Next Major Support: 105,600 (Dec. 16 low) - Immediate Resistance: 112,200–112,400 (short-term resistance range) - Key Resistance Zone: 114,000–115,000 (congestion zone) *🔹 Outlook:* After three weeks of consolidation, the KSE-100 index has seen a decline of 3.4%, closing at a seven-week low of 110,322. Price action remains weak, with low volumes signaling diminishing investor interest. The RSI has dropped below its trendline support, confirming bearish divergence. The index tested the 109,405 level but held above the gap support from December 20 (109,847), suggesting that the downside might be limited for now. - Bearish Scenario: A sustained break below the 109,847 gap support could extend losses, with the next major support around 105,600. A failure to hold above this level could push the index towards the 100-day SMA at 100,390. - Bullish Scenario: A short-term bounce toward the 112,200–112,400 range is possible if the 109,847 gap support holds, offering a sell-on-strength opportunity. With the current weak momentum and negative market sentiment, we recommend maintaining a cautious stance. Traders should be alert to potential short-term bounces, but selling on strength remains the preferred strategy until a clearer trend reversal emerges.