KOSPI pushes through Friday's high
Korea Composite Stock Price Index (KOSPI) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
KOSPI ended Monday at 2186.06 gaining ₩35.81 (1.67%). Closing above Friday's high at 2171.52, the index confirmed its breakout through the prior session high after trading up to ₩17.28 above it intraday.
Daily Candlestick Chart (KOSPI as at Jul 13, 2020):
Monday's trading range has been ₩25.73 (1.19%), that's below the last trading month's daily average range of ₩31.67. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently 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 6th, KOSPI actually lost -1.09% on the following trading day.
Though 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 four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Korea Composite Index. Out of 570 times, KOSPI closed higher 52.11% 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 53.86% with an average market move of 0.18%.