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May 20, 2023- Known Fib levels include 2,531.34 and 2,576
- The lower Bollinger Band® is currently at 2,465 while the higher band is at 2,544.69
The sentiment that generated 40 points in cumulative gains over the past 6 days was further evident for the Kospi Composite Index. Yesterday continued on the same track for the Kospi Composite Index — after finishing Thursday at 2,515.4, the Kospi Composite Index went up to 2,538.31 before paring its losses and closing at 2,537.79.
The Kospi Composite Index has managed to gain 13.61% so far this year despite trading at lows around 2,155.49 previously.
Support/Resistance levels obtained from chart analysis indicate that KOSPI Composite Index could be slowing down soon as it approaches resistance at 2,542.44. Of course, crossing it might suggest further gains are ahead. Concerning technical analysis and more specifically, trend indicators, the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Price action remains constrained around the key Fibonacci level of 2,531.34 currently serving as resistance According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at 2,544.69, thereby suggesting that the Kospi Composite Index is becoming overvalued.
Notwithstanding the Kospi Composite Index's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
Other markets are also showing gains as ASX 200 moves up 0.59% yesterday and closed at 7,236.8. Notably, Nikkei rose 0.77% yesterday and closed at 30,574.
Meanwhile, Hang Seng lost 1.4% yesterday and closed at 19,727.
