KOSPI closes lower for the 2nd day in a row
Korea Composite Stock Price Index (KOSPI) Technical Analysis Report for Jul 08, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, KOSPI finished Wednesday at 2158.88 losing ₩5.29 (-0.24%). Closing below Tuesday's low at 2164.03, Korea Composite Index confirmed its breakout through the previous session low after trading up to ₩13.14 below it intraday.
Daily Candlestick Chart (KOSPI as at Jul 08, 2020):
Wednesday's trading range has been ₩22.94 (1.06%), that's below the last trading month's daily average range of ₩38.26. 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 stock index shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further buying might move prices higher should the market test June's close-by high at 2217.21.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Korea Composite Index. Out of 382 times, KOSPI closed higher 56.02% 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 54.71% with an average market move of 0.19%.