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.
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Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.