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May 23, 2023
- The Kospi Composite Index hasn't traded above 2,575.51 for 4 weeks.
- The Kospi Composite Index could slow down as it approaches resistance at 2,572.35
Having added to its 81.66 points increase during 7 days of gains, The Kospi Composite Index lived up to expectations yesterday by maintaining its set course — after closing at 2,557 the day before, the Kospi Composite Index maintained a strong bullish bias that helped the index close higher at 2,575.43 yesterday. However, market bears ensured the the Kospi Composite Index topped out at 2,575.51 and that by the end of the session, the market had marked out a distinct 2,561 to 2,575.51 range.
The Kospi Composite Index has gained 14.55% since its lowest print of 2,155.49 earlier this year.
Technical analysis trend indicators suggest that investors are seeking long positions as KOSPI Composite Index price action surged above +100 — a key CCI threshold indicating an imminent bullish trend. Asset volatility analysis shows that Bollinger Band® analysis indicates that current price action is approaching the upper band at 2,559, thereby suggesting that the Kospi Composite Index is becoming overvalued. A study of the Kospi Composite Index's historical price actions shows the Kospi Composite Index could be slowing down soon as it approaches resistance at 2,572.35. Of course, crossing it might suggest further gains are ahead.
Notwithstanding the Kospi Composite Index's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
The Kospi Composite Index shows positive signs, other assets are also on par: Nikkei rises 0.64% yesterday and closed at 31,100. ASX 200 went up by 0.29% yesterday, and closed at 7,284.7.
Meanwhile, Dow Jones lost 0.42% yesterday and closed at 33,427.
