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June 13, 2023- Price action backs away from resistance at 2,658.58 despite bullish mood
- The lower Bollinger Band® is currently at 2,473.49 while the higher band is at 2,665.66
The sentiment that generated 153.93 points in cumulative gains over the past 20 days was further evident for the Kospi Composite Index. The Kospi Composite Index lived up to expectations yesterday by maintaining its set course — the Kospi Composite Index recovered from the previous trading session's losses and went up to 2,635.28 yesterday after it traded lower at 2,633.52.
The index has been trending positively for about a month. The Kospi Composite Index has fallen back around 0.45% from the significant high of 2,641 set 4 days ago.
The Kospi Composite Index's notable support and resistance levels: although KOSPI Composite Index is appreciating today after rising as high as 2,645.62, price action is now slowing and consolidating around 23.3 points below the 2,658.58 resistance level. Trend-following investors 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 2,665.66, thereby suggesting that the Kospi Composite Index is becoming overvalued.
Overall, while the Kospi Composite Index has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
Other markets are also showing gains as Nikkei leaps up 1.8% yesterday and closed at 32,434. Notably, Nasdaq rose 1.53% yesterday and closed at 13,259. S&P 500 is trading around 4,339 after ending yesterday's session at 4,299 (up 0.93% today).
