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May 25, 2023- Key support at 2,557.59 holds firm despite apparent early break
- The Kospi Composite Index's upper Bollinger Band® is at 2,570 which indicates a further downward move may follow.
Though in the midst of a 9 day uptrend, gaining a total of 3.2%, (92.03 points), The prevailing bullish trend is beginning to fade following yesterday's downbeat session. The Kospi Composite Index dipped as low as 2,551.49 before recovering some lost ground. However, the rebound failed to push the stock to where it started the session (2,570.64) with the Kospi Composite Index closing the day at 2,554.69.
The Kospi Composite Index has gained 14.8% since its lowest print of 2,155.49 earlier this year.
Technical analysis trend indicators suggest that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Analysis based on the asset volatility indicates that the Kospi Composite Index's upper Bollinger Band® is at 2,570 which indicates a further downward move may follow. Support/Resistance levels obtained from chart analysis indicate that the Kospi Composite Index reversed direction at 2,557.59 support zone and climbed 2.9 points above it.
Overall, while the Kospi Composite Index has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
In the meantime, negative performances are also seen in other markets, Hang Seng dips 1.93% yesterday and closed at 19,100. ASX 200 lost 1.05% yesterday and closed at 7,213.8. Dow Jones lost 0.77% yesterday and closed at 33,056.
