Last week I was expecting that if Kospi maintains 1900 levels in early days then there is a chance that it may test higher levels but I was not sure about 1940 level. I am still maintaining my last week’s stand, so long it does not cross around 2000 levels in the upside it has the chance to trigger its medium-term bearish pattern and if it able to cross around 1940 then it may create a bullish pattern.
In coming week I will not surprise if Kospi faces small correction in early days to test around 1900 levels again. In fact the medium-term bullish pattern which I talked about, demands Kospi to drops but that should not be below 1860. If complete this bullish pattern and triggers it in later part of the coming week then it has a chance to test above 2000 levels.
On the other hand if Kospi fails to maintain 1900 level then it may trigger the bearish pattern. During last few months Kospi is following lower highs and lower lows trend, unless it is coming out of that trend, the chance of triggering the bearish pattern is more. The way it moves during last few days, Kospi may break that trend in coming week by breaking 1940 levels in the upside.
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