KOSPI rises to highest close since June 10th
Korea Composite Stock Price Index (KOSPI) Technical Analysis Report for Jul 06, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, KOSPI finished Monday at 2187.93 gaining ₩35.52 (1.65%). Today's close at 2187.93 marks the highest recorded closing price since June 10th. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (KOSPI as at Jul 06, 2020):
Monday's trading range has been ₩33.57 (1.55%), that's slightly below the last trading month's daily average range of ₩38.41. 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.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on July 2nd, KOSPI gained 0.80% on the following trading day.
Prices are trading close to the key technical resistance level at 2200.72 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying might move prices higher should the market test June's close-by high at 2217.21.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Korea Composite Index. Out of 160 times, KOSPI closed higher 53.75% 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 10 trading days, showing a win rate of 57.50% with an average market move of 0.13%.