Yuanta Securities "KOSPI Approaching Long-Term Resistance Level"

Short-term uptrend after mid-October
Resistance around 2300p level considered surpassed
Foreigners' net selling volume ↓... net buying not yet
"Foreigners assess the rise as limited in scope"

[Asia Economy Reporter Hwang Yoon-joo] The KOSPI index has continued its short-term upward trend since mid-October, surpassing the resistance level around 2300 points. Analysts suggest that it is approaching a long-term resistance zone.

Jeong In-ji, a researcher at Yuanta Securities, stated, "It is positively evaluated that the stair-step decline structure, where the previous low point was breached during the long-term downtrend and that breached previous low zone became resistance again, has come to an end."

On the 3rd, KOSPI opened down 1.69% but closed with only a 0.33% decline. Most of the early losses were recovered, showing a valid short-term upward trend.

Researcher Jeong assessed, "Based on experience, since May, KOSPI has shown similar short-term trends before and after the FOMC meetings, so it is highly likely that a similar pattern will continue this time as well."

However, there are significant resistance levels around 2400 points, including the long-term downtrend line and the 120-day moving average, which may pose challenges during an upward move. He explained, "Generally, the 120-day moving average is called the economic line and tends to act as a turning point for long-term trends. If the short-term upward trend continues and recovers this moving average located around 2400 points, it could indicate a potential change in the long-term downtrend."

Foreign investors' movements remain somewhat cautious. The cumulative volume of foreign investors' KOSPI 200 futures (combined mini and big futures) decreased from minus 21,674 contracts on October 26 to 3,682 contracts the previous day, reducing the net selling scale. It has not yet turned into a cumulative net buying position.

Researcher Jeong said, "They do not seem to be actively responding to the possibility of a rise," adding, "While the possibility of a decline is considered low, the potential for an increase is also estimated to be limited."

This content was produced with the assistance of AI translation services.