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May 18, 2023- Price action backs away from resistance at 2,503.68 despite bullish mood
- Market price breaks 28.63 points above key Fib handle of 2,486.77
The sentiment that generated 19.24 points in cumulative gains over the past 4 days was further evident for the Kospi Composite Index. On-trend the Kospi Composite Index closed the session yesterday with more of the same: the Kospi Composite Index recovered from the previous trading session's losses and went up to 2,515.4 yesterday after it traded lower at 2,500.
The index has been trending lower for about 30 days. 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 11.55% year to date.
KOSPI Composite Index made an initial breakout above its 10 day Simple Moving Average at 2,497.25, a potential indicator of a newly emerging bullish phase. Crossed the 2,486.77 Fibonacci level, next level is at 2,503.8. In contrast, although the Kospi Composite Index is appreciating today after rising as high as 2,515.4, price action is now slowing and consolidating around 11.72 points below the 2,503.68 resistance level.
Overall, looking at the technical analysis landscape, it seems the Kospi Composite Index might continue pointing upwards in the short term.
Other markets are also showing gains as Nikkei went up by 1.6% yesterday, and closed at 30,574. DAX went up by 1.71% yesterday, and closed at 16,224. Dow Jones is trading around 33,421 after ending yesterday's session at 33,000 (up 1.24% today).
