KOSPI (SEOUL.NDX)

Short term

KOSPI has broken through the floor of a rising trend channel in the short term. This indicates a slower rising rate at first, or the start of a more horizontal development. The index is between support at points 2453 and resistance at points 2493. A definitive break through of one of these levels predicts the new direction. The short term momentum of the index is strongly negative, with RSI below 30. This indicates increasing pessimism among investors and further decline for KOSPI. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The RSI curve shows a falling trend, which could be an early signal of the start of a falling trend for the price as well. The index is overall assessed as technically slightly positive for the short term.

Recommendation one to six weeks: Weak Positive

Medium term

KOSPI has broken the floor of the rising trend channel in the medium long term, which indicates a weaker initial rising rate. The index gave a negative signal from the head and shoulders formation by the break down through the support at 2500. Further fall to 2211 or lower is signaled. There is no support in the price chart and further decline is indicated. In case of a positive reaction, the index has resistance at 2640 points. The index is overall assessed as technically negative for the medium long term.

Recommendation one to six months: Negative

Long term

KOSPI is in a rising trend channel in the long term. This shows that investors over time have bought the index at higher prices and indicates good development for the market. The price has reacted back after a false break of the rectangle formation. A significant penetration of 2401 will again give new negative signals to the index, while a break of the opposite side of the formation will be a strong positive signal. The index has support at points 2270 and resistance at points 2660. The RSI curve shows a rising trend, which supports the positive trend. The index is overall assessed as technically neutral for the long term.

Recommendation one to six quarters: Hold