Technical Analysis: KOSPI index: short term reversal


Technical Commentary :
The KOSPI Index represents the evolution of the 200 most important South Korean equities…....

Day By Day – Indipendent Research

It got close to the lower zone of this vast long term consolidation phase and could come back towards the higher part of the zone in the upcoming months. We are neutral in the medium term within this large consolidation phase.  Furthermore, the 200 day moving average is flat.



Anticipation  :

In the short term, the index briefly breached the horizontal support at 235.7 points. This probably establishes a trap for bears and could restart the bullish dynamics in the short term. Let’s also note that after this “false signal”, a bullish divergence has been forming on the RSI, a large bullish gap has been opened and that the 240.1 points resistance has been cleared. Thus, we consider that the KOSPI index can quickly meet up the 249.2 level. The invalidation threshold is set below the 235.7 points.

Close price 242.23

2 months Opinion NEUTRAL
2 weeks Opinion POSITIVE

Resistances 249,2 / 253,7 pts
Supports 235,7 / 229,1 pts

Follow-up Analysys: The tracker from the 28/05/2012 recommended the buying of the EPRA EURO ZONE. The index has reached our target at 1588 points, a 7.44% progression. The bullish dynamics should continue towards 1669 points.


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Source: ETFWorld – Day By Day – Indipendent Research



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