InvestingScope
Long

KOSPI: 1W Death Cross confirms bottom. Long term Buy Opportunity

TVC:KOSPI   Korea Composite Stock Price Index
The Korea Composite Stock Price Index is currently on a 5 week bullish streak (5 green 1W candles in a row) approaching the overbought zone on 1D ( RSI = 70.924).

The important development on the 1W chart though has been the Death Cross formation (MA50 below MA200) earlier this June. This is generally a bearish signal but last time that happened in February 2009 during the Global Subprime Crisis, it signaled the market of the bottom and the start of the new multi year bull cycle.

As such we are interpreting this pattern as bullish signalling the bottom of the bear cycle that started with the January 2018 All Time High. This 5 week bullish streak may be the early signal to tell us that we are gradually starting the new bull cycle. Despite this bullish run, 1W remains only neutral ( RSI = 50.334, STOCH = 46.185, CCI = 30.0297) indicating that the upside potential is significant.

We are long on this market aiming initially at the previous market high at 2,600.



** If you like our free content follow our profile (https://www.tradingview.com/u/InvestingS...) to get more daily ideas. **

Comments and likes are greatly appreciated.
High quality portfolio management, asset allocation with excellent risk management. Grow your account, achieve steady profit levels and increase your trading edge with InvestingScope (http://www.investingscope.com).
Home Stock Screener Forex Screener Crypto Screener Economic Calendar Shows How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Help Center Refer a friend Feature Request Blog & News Twitter
Profile Profile Settings Account and Billing Refer a friend My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out