Another long-term bullish chart here, in the Korea KOSPI 200 index. Prices broke out of the 200-225 range, but failed the back-test and also broke out of the parallel trend channel. It remains to be seen whether we have one more high on the cards, or this is the start of a medium-term correction. The former scenario may hold.
The chart is self explanatory - note how the trendlines trap the price beautifully. Over the past 2 years, the KOSPI fell in 3 clear waves, and recovered strongly, just like the SENSEX.
Wave 5 could have ended around 230. Alternatively, that was leg i of 5, and new highs are ahead. Initial resistance zone is at 244. Supports are as drawn on the chart, and represent good buying opportunities IMHO.
All the best!
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