Chart of the day: Kospi climbing higher

PUBLISHED : Friday, 01 August, 2014, 1:03am
UPDATED : Friday, 01 August, 2014, 1:03am

The rally for South Korea's benchmark Kospi share index this week has helped fuel a rise in the broad MSCI Asia index to its highest in more than six years. Technical charts indicate that this important break higher will be sustained. Right-angled triangle patterns most often indicate the continuation of a trend once a break is made. The Kospi's triangle has been forming since late 2011 and bursting above its top edge suggests potentially very significant gains over the long term. The record high at 2,231 set in April 2011 is a clear possibility.

Nicole Elliott is a technical analyst