KOSPI closes within prior day's range after lackluster session

Korea Composite Stock Price Index (KOSPI) Technical Analysis Report for Jul 09, 2020 | by Techniquant Editorial Team


KOSPI closes below its opening price unable to hold early session gains
KOSPI closes within previous day's range after lackluster session


KOSPI finished Thursday at 2167.90 gaining ₩9.02 (0.42%). Trading ₩10.33 higher after the open, the index was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.

Daily Candlestick Chart (KOSPI as at Jul 09, 2020):

Daily technical analysis candlestick chart for Korea Composite Stock Price Index (KOSPI) as at Jul 09, 2020

Thursday's trading range has been ₩14.74 (0.68%), that's far below the last trading month's daily average range of ₩36.39. 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 bearish candlestick pattern matches today's price action, the Shooting Star. The last time a Shooting Star showed up on June 22nd, KOSPI actually gained 0.21% on the following trading day.

While still in a long-term downtrend, the short and medium-term trends both turned bullish already.

Buying might speed up should prices move above the close-by swing high at 2206.79 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 2150.89 where further sell stops could get triggered. Further buying might move prices higher should the market test June's close-by high at 2217.21.

Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Korea Composite Index. Out of 40 times, KOSPI closed higher 67.50% 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 55.00% with an average market move of 0.09%.

Market Conditions for KOSPI as at Jul 09, 2020

Loading Market Conditions for KOSPI (Korea Composite Stock Price Index)...
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