Kospi is still in the same spot which I have specified in my last posting. 1980 level is a good support for coming week and there is a good chance that it may bounce in the upside from that level. But if Kospi breaks around 1950-60 ranges in the downside then it will be not good for it, as there is a chance of creating a bearish pattern.
In coming week if Kospi breaks 2000 ranges in the upside then it will try to test 2050 range which it failed to break in last two years. But unless Kospi is breaking 2020 range in the upside or at least give us a sign that it is going to stay above that range we may not see a better environment and for this I think it is better get full confirmation in this higher level.
Last time I was talking about an upward channel and since it does not break that level completely so I am still maintaining my view of starting a new uptrend if it breaks around 2050 level.
On the other hand HANG SENG is getting resistance at around 23250 ranges and unless it is breaking that level, 23550 ranges look far from it. Last two days were better for it and so long it maintains 22500 range I can not negate the move of testing 23550 level.
But if it breaks 22500 range in the downside then it may go into a bearish zone, in fact it may make a bearish pattern in future so therefore Hang Seng may test around 21500 range.
On a long-term basis it is moving an upward channel from around 2011 level so unless Hang Seng is breaking that channel I am not expecting a big correction in it.
NOTE: Disclaimer of my blog www.worldequitymarket.blogspot.com is also applicable to the above writing.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.