ASX, ASX 200 INDEX, KOSPI, KOSPI COMPOSITE INDEX – TECHNICAL OUTLOOK:
- The ASX 200 index’s rally is exhibiting indicators of fatigue.
- KOSPI could possibly be gearing up for a catch up rally.
- What are the important thing ranges to look at?
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ASX 200 TECHNICAL OUTLOOK – BULLISH
Australia ASX 200 index’s rally is exhibiting indicators of fatigue because it exams powerful converged resistance on a rising trendline from a 12 months in the past and the April 2022 excessive of 7624, shade beneath the file excessive of 7633 hit in 2021. Flagging momentum on the every day chart — the 14-day Relative Strength Index (RSI) has been turning decrease simply because the index rose to a contemporary larger earlier this week — suggests the index may discover it tough to crack the converged ceiling.
ASX 200 INDEX Daily Chart
Chart Created by Manish Jaradi using Metastock
From a directional perspective, on the every day charts, the development is up (see the every day chart). However, some consolidation/a minor retreat can’t be dominated out given overbought circumstances. Moreover, within the final couple of weeks or so, the index has struggled to increase features, doubtlessly a signal of purchaser fatigue.
ASX 200 INDEX Daily Chart
Chart Created by Manish Jaradi Using TradingView
Immediate help is on the December excessive of 7375. Any break beneath would point out that the short-term upward strain had pale, pointing to a vary growing. The broader uptrend is unlikely to be threatened whereas the index holds above the 200-day transferring common (now at about 7000). As highlighted within the earlier replace, the break towards the tip of 2022 above the August excessive of 7138 triggered a double backside (the June 2022 and the October 2022 lows), pointing to a potential rise towards 7865.
KOSPI COMPOSITE INDEX TECHNICAL OUTLOOK – NEUTRAL
The Kospi Composite Index has lagged a few of its friends in latest weeks however seems to be getting ripe for a rally.
KOSPI Daily Chart
Chart Created by Manish Jaradi using Metastock
The South Korean benchmark index is trying to rise above essential resistance that might form the trajectory for the approaching weeks. A decisive break (2 every day closes) above the marginally downward-sloping trendline from August (at about 2480) would set off a reverse head & shoulders sample (the left shoulder is the mid-2022 low, the pinnacle is the September low, and the correct shoulder is the early-January low), paving the best way towards 2870.
KOSPI Daily Chart
Chart Created by Manish Jaradi Using TradingView
Such a break would additionally coincide with a rise above the 200-day transferring common for the primary time since late 2021 – a signal that the multi-month downward strain was fading. For the bullish view to unfold, the index, at minimal, wants to carry above quick help on the mid-January low of 2355. Strong help is on the early-January low of 2181.
— Written by Manish Jaradi, Strategist for DailyFX.com