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May 04, 2023
- The Kospi Composite Index is eyeing the 2,494.7 support level
- Price action is currently stuck around the active Fibonacci support level of 2,503.8
A quiet day for the Kospi Composite Index as it remained range-bound within a 2,486 – 2,502 range before closing at 2,501.
This year has been a bright one for the Kospi Composite Index after trading as low as 2,155.49 and going on to appreciate by 11.85% year to date.
KOSPI Composite Index made an initial break below its 5 day Simple Moving Average at 2,499, a possible indication of a forthcoming negative trend. Price action remains constrained around the key Fibonacci level of 2,503.8 currently serving as support. If price action breaks below, the next Fib hurdle is 2,486.77. Despite this, the Kospi Composite Index is approaching key support, around 6.24 points away from 2,494.7. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls.
Despite the market lacking direction, technical chart analysis strongly suggests the Kospi Composite Index is positioned for a downward move in the near term.
While the Kospi Composite Index was pretty flat yesterday, mixed performances were seen elsewhere as FTSE lost 0.76% yesterday and closed at 7,788.37. Dow Jones is down to 33,400, losing 300 points, after ending the previous session around 33,700. Notably, Hang Seng rose 1.27% yesterday and closed at 19,700.
