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 High
273.85   Last week’s high
269.80   September High
265.90   October High
257.17   100 week Moving Average
256.90   100 day Moving Average
256.75   November High
256.25   Daily 50% Fibonacci



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