South Korea’s KOSPI (KOSPI) rallied recently and retested several key resistance levels.
Yesterday’ key reversal pattern on its daily chart could potentially signal that the retest ended in a failure to breakout above the previous strong resistance band of 2,050-2,095 and also the support turned resistance trend line from the 2008 lows.
The key reversal pattern also likely marks the end of wave 3ii and we expect more selling to take place soon.
Falling back below 2,109 and also its 200-day SMA would put the bear in control for the short term, targeting the 50-day SMA and 1,915.
Below 1915 would likely bring about further selling towards 1,800 and below once more. We remain bearish on the KOSPI as long as 2,101 stays intact. (Read Report)
Source : CIMB Research