Issued by: Elite Invest Research Desk
(October 2025 Monthly Review)
🔹 Understanding a Reversal Day
A Reversal Day (or Reversal Candle on higher timeframes) occurs when the market makes a new extreme in the direction of the prevailing trend — a new high in an uptrend or a new low in a downtrend — but then closes in the opposite direction, showing a shift in momentum.
🔍 How to Spot It
In an uptrend, price creates a higher high than the previous period but closes below the prior close → bearish reversal.
In a downtrend, price makes a lower low but closes higher → bullish reversal.
Volume confirmation is key: a reversal is stronger when accompanied by a significant rise in traded volume, indicating institutional activity or profit-taking.
This pattern signals potential exhaustion of the prevailing trend and often marks the beginning of a corrective or opposite phase.
🔹 Current Market Analysis – KSE-100 Index
The KSE-100 Index has delivered a remarkable advance from around 39,000 in early 2023 to a recent peak near 170,000, representing a gain of more than 130,000 points (≈ 330%).
However, the October 2025 monthly candle exhibits classic reversal characteristics:
The index printed a new all-time high near 169,900.
It subsequently closed lower, around 163,300, forming a bearish reversal candle on the monthly timeframe.
Volume surged sharply, reaching one of the highest readings in years — a sign of distribution pressure and profit-booking by large participants.
🔹 Technical Implications
The combination of a reversal candle + high volume suggests that the market’s upward momentum is weakening and that a correction or consolidation phase may follow after this steep, extended run-up.
Outlook
“After an extraordinary 330 % bull run, the KSE-100 is exhibiting early signs of trend exhaustion.
The current monthly candle qualifies as a reversal bar with climactic volume, implying that short- to medium-term caution is warranted.
We expect the market to enter a corrective or consolidation phase before attempting another sustained advance.”
Investors are advised to:
Protect recent gains through partial profit-taking or stop adjustments.
Avoid chasing highs until confirmation of renewed strength.
(October 2025 Monthly Review)
🔹 Understanding a Reversal Day
A Reversal Day (or Reversal Candle on higher timeframes) occurs when the market makes a new extreme in the direction of the prevailing trend — a new high in an uptrend or a new low in a downtrend — but then closes in the opposite direction, showing a shift in momentum.
🔍 How to Spot It
In an uptrend, price creates a higher high than the previous period but closes below the prior close → bearish reversal.
In a downtrend, price makes a lower low but closes higher → bullish reversal.
Volume confirmation is key: a reversal is stronger when accompanied by a significant rise in traded volume, indicating institutional activity or profit-taking.
This pattern signals potential exhaustion of the prevailing trend and often marks the beginning of a corrective or opposite phase.
🔹 Current Market Analysis – KSE-100 Index
The KSE-100 Index has delivered a remarkable advance from around 39,000 in early 2023 to a recent peak near 170,000, representing a gain of more than 130,000 points (≈ 330%).
However, the October 2025 monthly candle exhibits classic reversal characteristics:
The index printed a new all-time high near 169,900.
It subsequently closed lower, around 163,300, forming a bearish reversal candle on the monthly timeframe.
Volume surged sharply, reaching one of the highest readings in years — a sign of distribution pressure and profit-booking by large participants.
🔹 Technical Implications
The combination of a reversal candle + high volume suggests that the market’s upward momentum is weakening and that a correction or consolidation phase may follow after this steep, extended run-up.
Outlook
“After an extraordinary 330 % bull run, the KSE-100 is exhibiting early signs of trend exhaustion.
The current monthly candle qualifies as a reversal bar with climactic volume, implying that short- to medium-term caution is warranted.
We expect the market to enter a corrective or consolidation phase before attempting another sustained advance.”
Investors are advised to:
Protect recent gains through partial profit-taking or stop adjustments.
Avoid chasing highs until confirmation of renewed strength.
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.