The Kospi Composite Index builds bearish momentum towards key support at 2,561.55

• Key support at 2,561.55 holds firm despite apparent early break
• The Kospi Composite Index's upper Bollinger Band® is at 2,595.45 which indicates a further downward move may follow.

Though in the midst of a 7 day uptrend, gaining a total of 4.55%, (116.68 points), Yesterday's session suggests run might be coming to an end — the Kospi Composite Index dipped as low as 2,557.19 before recovering some lost ground. However, the rebound failed to push the stock to where it started the session (2,582.23) with the Kospi Composite Index closing the day at 2,571.

The index has been trending positively for about a month. The Kospi Composite Index has managed to gain 14.79% so far this year despite trading at lows around 2,155.49 previously.

KOSPI Composite Index's upper Bollinger Band® is at 2,595.45 which indicates a further downward move may follow. Despite this, the Kospi Composite Index could begin to recover as it approaches significant support, now 9.57 points away from 2,561.55. Dipping below could be an indication that further losses are ahead.

Following today's unexpected losses, extensive multifactorial technical analysis forecasts the Kospi Composite Index to buck against its prevailing uptrend and begin to dip lower in the short term. With all probabilities considered, the the Kospi Composite Index is expected to attract significant bearish sentiment in the coming days.

In the meantime, negative performances are also seen in other markets, Hang Seng lost 0.56% yesterday and closed at 20,782. After ending yesterday's session at 7,381.5, ASX 200 lost 23.9 points and is trading around 7,357.6.

Other assets are showing positive performances as notably, Nikkei rose 0.6% yesterday and closed at 28,500.