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June 24, 2023- Price action honing in on likely support at 2,558.51
- Price action breaks below known Fib level (2,578) with 2,558.29 the next target
Having fallen 47.46 points in 11 days, Yesterday's session continued down the same path: the Kospi Composite Index dropped 23.7 points early on and stayed at 2,570.
Approximately 15 days ago, the Kospi Composite Index reached a significant high of 2,641 but has struggled to hold onto its gains and declined 1.8% since then.
KOSPI Composite Index could begin to recover as it approaches significant support, now 11.59 points away from 2,558.51. Dipping below could be an indication that further losses are ahead. Bollinger Bands® shows an indication of recovery: the lower band is at 2,553.82, a low enough level to, generally, suggest that the Kospi Composite Index is trading below its fair value. On the other hand, note that after descending below strong Fibonacci support at 2,578, market bears have earmarked 2,558.29 as the next downside target.
Overall, looking at the technical analysis landscape, it seems the Kospi Composite Index —which is currently on a downtrend— might reverse course and start pointing upward in the short term.
In the meantime, negative performances are also seen in other markets, ASX 200 lost 1.34% yesterday and closed at 7,195.5. Hang Seng lost 1.71% yesterday and closed at 19,218. Nikkei is down to 32,782, losing 483.34 points, after ending the previous session around 33,265.
