KOSPI (SEOUL.NDX)

Short term

KOSPI is within an approximate horizontal trend channel in the short term, which indicates further development in the same direction. The index is testing resistance at points 2494. This could give a negative reaction, but an upward breakthrough of points 2494 means a positive signal. Negative volume balance indicates that volume is high on days with falling prices and low on days with rising prices, which weakens the index. The index is overall assessed as technically negative for the short term.

Recommendation one to six weeks: Negative

Medium term

KOSPI has broken through the floor of a rising trend channel in the medium long term. This indicates a slower rising rate at first, or the start of a more horizontal development. The price has reacted back after a break of the head and shoulders formation. There is resistance around 2500, which now opens good sales opportunities. A decisive break of this resistance will neutralize the negative signal. 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. Negative volume balance indicates that sellers are aggressive while buyers are passive, and weakens the index. The index is overall assessed as technically negative for the medium long term.

Recommendation one to six months: Negative

Long term

Investors have paid higher prices over time to buy KOSPI and the index is in a rising trend channel in the long term. This signals increasing optimism among investors and indicates continued rise. The price has reacted back after a false break of the rectangle formation. A significant penetration of 2387 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. Negative volume balance indicates that volume is high on days with falling prices and low on days with rising prices, which weakens the index. 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