Chart Book | Chart of the Day: Kospi to test high

In the wake of its 10 per cent rally over the past two months, the Kospi Sentiment Barometer Indicator has moved into an extended optimism condition. In the near-term, the index looks stretched on sentiment and overbought on momentum grounds. Kospi's break above long-term resistance in the 2,060-2,090 area is a positive technical step forward, which points to a test of historic highs in the coming months (2,208 is all-time high). Near-term Kospi is overbought and at heightened risk of pull-back, but its recent breakout points to further upside in the medium-term.