Kospi

After completing its complex correction in the for of w-x-y-x-z, Kospi index broke out from the falling trendline and recently it pulled back and re-tested the trendline. In yesterday's trading session, it formed a Doji and in today's trading session, it is moving higher giving an indication that the corrective phase might be over. Also, it is possibly forming an inverse head and shoulder pattern which can be a reversal pattern. The breakout point would be the close above the neckline, which is currently at 3040 level. For now, conservatively, Kospi can possibly move higher to 3138 where wave i/a will be equal to wave iii/c. On the way down, yesterday's low of 2910 will be a crucial support level to watch out for in the near term.