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June 03, 2023- 32.19 points is the Kospi Composite Index's largest daily jump in 8 weeks and a half.
- The Kospi Composite Index drawing closer to significant resistance at 2,607.2 with potentially further upside ahead
15 days and 93.75 points of gains were not enough. Yesterday's session pointed in the same direction — after finishing Thursday at 2,569.17, the Kospi Composite Index went up to 2,601.38 before paring its losses and closing at 2,601.36.
The Kospi Composite Index has managed to gain 16.56% so far this year despite trading at lows around 2,155.49 previously.
Trend-focused traders would be interested to note that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Asset volatility analysis shows that Bollinger Band® analysis indicates that current price action is approaching the upper band at 2,619, thereby suggesting that the Kospi Composite Index is becoming overvalued. Support/Resistance levels obtained from chart analysis indicate that the Kospi Composite Index is 5.84 points away from testing key resistance at 2,607.2. Peaking above this level could inspire market bulls and open the path to further gains.
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: Hang Seng surges 4% yesterday and closed at 18,217. Dow Jones is trading around 33,763 after ending yesterday's session at 33,062 (up 2.12% today). FTSE went up by 1.56% yesterday, and closed at 7,607.28.
