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Chart of the day: Kospi eyes ride towards 12-month high

PUBLISHED : Monday, 02 March, 2015, 9:52pm
UPDATED : Thursday, 05 March, 2015, 9:45pm

South Korea's Kospi stock benchmark remains in an uptrend, with excessive pessimism having again lent contrarian support for the index to bounce off its long-term trend line. Its subsequent 5 per cent rally has seen the Absolute Strategy Research Kospi sentiment barometer index move above the 50 level - its return to positive sentiment. However, the next technical test for the index is at hand. Near-term resistance may emerge around 1,980. A break above that level would clear the way for a move towards 2,010, with 2,035 the next likely resistance area after that, to target a potential return to 12-month highs around 2,080.

David McBain is a technical strategist at Absolute Strategy Research