Forecast for 7th January 2013
Kospi Futures topped at 273.85 last week and formed a short term topping pattern. We could test support at 266.50/35 today and if we cannot bounce off this point look for 263.89 as the next downside target. Exit shorts and try longs looking for the bounce with a stop below 261.80. Go with a break below here then in expectation of a test of support at 258.27-257.73. Excellent buying opportunity seen with in this band.
Immediate resistance seen at 269.80 then Friday’s high of 271.35 will need to be beaten for a retest of last week’s high at 273.85. Exit any longs on the approach with a good chance of a top here again today. Try shorts as we approach the 2012 high of 274.60 as this is tough resistance in a market that is over bought and in need of some profit taking on the daily chart.
Long term levels
274.60 2012 High273.85 Last week’s high269.80 September High265.90 October High257.17 100 week Moving Average256.90 100 day Moving Average256.75 November High256.25 Daily 50% Fibonacci
The article was first published by DayTradeIdeas.com