ASX, ASX 200 INDEX, KOSPI, KOSPI COMPOSITE INDEX - TECHNICAL OUTLOOK:
- The ASX 200 index’s rally is showing signs of fatigue.
- KOSPI could be gearing up for a catch up rally.
- What are the key levels to watch?
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ASX 200 TECHNICAL OUTLOOK – BULLISH
Australia ASX 200 index’s rally is showing signs of fatigue as it tests tough converged resistance on a rising trendline from a year ago and the April 2022 high of 7624, shade below the record high of 7633 hit in 2021. Flagging momentum on the daily chart -- the 14-day Relative Strength Index (RSI) has been turning lower just as the index rose to a fresh higher earlier this week -- suggests the index could find it difficult to crack the converged ceiling.
ASX 200 INDEX Daily Chart
![image1.png](https://a.c-dn.net/b/0ljvW2/image1.png)
Chart Created by Manish Jaradi using Metastock
From a directional perspective, on the daily charts, the trend is up (see the daily chart). However, some consolidation/a minor retreat can’t be ruled out given overbought conditions. Moreover, in the last couple of weeks or so, the index has struggled to extend gains, potentially a sign of buyer fatigue.
ASX 200 INDEX Daily Chart
![image2.png](https://a.c-dn.net/b/49enD2/image2.png)
Chart Created by Manish Jaradi Using TradingView
Immediate support is at the December high of 7375. Any break below would indicate that the short-term upward pressure had faded, pointing to a range developing. The broader uptrend is unlikely to be threatened while the index holds above the 200-day moving average (now at about 7000). As highlighted in the previous update, the break toward the end of 2022 above the August high of 7138 triggered a double bottom (the June 2022 and the October 2022 lows), pointing to a potential rise toward 7865.
KOSPI COMPOSITE INDEX TECHNICAL OUTLOOK - NEUTRAL
The Kospi Composite Index has lagged some of its peers in recent weeks but appears to be getting ripe for a rally.
KOSPI Daily Chart
![image3.png](https://a.c-dn.net/b/3tIQdT/image3.png)
Chart Created by Manish Jaradi using Metastock
The South Korean benchmark index is attempting to rise above crucial resistance that could shape the trajectory for the coming weeks. A decisive break (2 daily closes) above the marginally downward-sloping trendline from August (at about 2480) would trigger a reverse head & shoulders pattern (the left shoulder is the mid-2022 low, the head is the September low, and the right shoulder is the early-January low), paving the way toward 2870.
KOSPI Daily Chart
![image4.png](https://a.c-dn.net/b/1vJcfn/image4.png)
Chart Created by Manish Jaradi Using TradingView
Such a break would also coincide with a rise above the 200-day moving average for the first time since late 2021 – a sign that the multi-month downward pressure was fading. For the bullish view to unfold, the index, at minimum, needs to hold above immediate support at the mid-January low of 2355. Strong support is at the early-January low of 2181.
--- Written by Manish Jaradi, Strategist for DailyFX.com