BIST 100 Triggers Circuit Breaker: Index Closes Day Down 5.54%

The BIST 100 index closed the day with a 5.54% decline, triggering a circuit breaker; this sharp selling pressure is expected to weaken risk appetite in the short term. Although the RSI at 17.9 is in oversold territory, the MACD remains below its signal line and in negative territory, indicating that the downward momentum has not yet exhausted. The price is significantly below its 20 and 50-day moving averages, and the technical outlook is weak. Following the circuit breaker, panic selling is likely to continue or rebound buying may remain limited. I assess that downside risk persists in the 1-3 day horizon, but volatility will be high due to oversold conditions.

GARAN shares closed down 5.55% at 120.7 TL, with heavy selling pressure evident as the BIST 100 index triggered a circuit breaker. Although the RSI14 value at 16.06 is in oversold territory, MACD remains below its signal line and in negative territory, indicating that downward momentum may continue. The price is well below its 20- and 50-day moving averages, confirming a short-term downtrend. The index circuit breaker reflects panic selling across the market and could create additional pressure on the stock. However, oversold conditions may attract bargain hunting; nevertheless, the 1-3 day outlook remains predominantly bearish.

The BIST 100's circuit breaker and 5.54% sharp decline are creating significant selling pressure on banking stocks such as AKBNK. The stock already closed the day down 6.33%, and with an RSI of 26, it is approaching oversold territory; while this suggests potential short-term rebound buying, overall market panic remains dominant. MACD is below the signal line and negative, and the stock is trading below its SMA20 and SMA50, indicating that the downtrend has not yet reversed. Over the next 1-3 days, index-driven volatility and selling pressure are expected to persist, keeping any potential rebound gains limited. Nevertheless, due to oversold conditions, a volatile course after the sharp decline is highly likely.