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June 01, 2023- The Kospi Composite Index is eyeing 2,570 as its nearest support level
- Price action breaks below known Fib level (2,576) with 2,531.34 the next target
During a 13 day uptrend, the Kospi Composite Index gained a total of 101.7 points, or 3.79%. Bucking the trend and turning lower, the Kospi Composite Index ended yesterday's trading session by losing 0.31% and is now trading at 2,569.17.
The Kospi Composite Index has gained 15.24% since its lowest print of 2,155.49 earlier this year.
After descending below strong Fibonacci support at 2,576, market bears have earmarked 2,531.34 as the next downside target. A "bearish engulfing" pattern — a scenario when a larger red candle engulfs a smaller green candle, at the top of a prevailing uptrend. Typically this is a signal of lower prices in the near term. The Kospi Composite Index's upper Bollinger Band® is at 2,599 which indicates a further downward move may follow. Despite this, the Kospi Composite Index could begin to recover as it approaches significant support, now 0.793 points away from 2,570. 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.
Other assets are showing positive performances as Nikkei is up 0.84%. DAX is up 0.68%. Having closed the previous session at 7,091.3, ASX 200 is up 0.27% today to currently trade at around 7,110.8.
Upcoming fundamentals: South Korea CPI (YoY) (May) is scheduled for today at 23:00 UTC.
