KOSPI ends the day indecisive
Korea Composite Stock Price Index (KOSPI) Technical Analysis Report for Jul 03, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, KOSPI ended the week 0.83% higher at 2152.41 after gaining ₩17.04 (0.8%) today. Trading up to ₩12.59 lower after the open, the stock index managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 17th, KOSPI actually lost -0.35% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (KOSPI as at Jul 03, 2020):
Friday's trading range has been ₩18.24 (0.85%), that's far below the last trading month's daily average range of ₩38.85. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KOSPI.
The index managed to close back above the 20-day moving average at 2136.27 for the first time since June 24th.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Korea Composite Index. Out of 141 times, KOSPI closed higher 54.61% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after three trading days, showing a win rate of 59.57% with an average market move of 0.05%.