KOSPI sees bears back in charge after...>

SOUTH KOREA: KOSPI sees bears back in charge after it has seemingly completed

some kind of market top. The fragility of the preceding uptrend was evident in

the RSI, which charted a failure swing top through Nov. This followed a negative

RSI divergence which unfolded between Sep 24 - Nov 6. Against this backdrop, a

bearish Harami candlestick pattern charted on Nov 15/18 sparked a dynamic

sell-off, which resulted in a channel breakout and took the index below the

neckline provided by Nov 11/13 lows of 2,119.07/2,118.67, confirming a double

top reversal pattern. In the process, KOSPI filled the gap from earlier this

month and slid under its 200-DMA, threatening to breach the 50-DMA at 2,086.52,

the nearest support level. Below there opens the Oct 10 trough at 2,010.90.

- With little of note on the S. Korean docket, this week's sell-off has been

driven mostly by the goings-on in U.S.-China relations. Participants remain wary

of potential implications of the contentious U.S. bill re: Hong Kong protests

for the ongoing trade talks with Beijing. Meanwhile, earlier enthusiasm about

the touted "phase-one" deal has waned amid recurrent reports of hitting a snag. 

- See chart at: https://emedia.marketnews.com/marketnewsintl/KOSPI21112019.png