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And, in fact, in the past few days the index has broken out above an important cluster of resistance near the 2050 level and in convincing fashion. View photos The resistance near the 2050 area included: The Post-2015 Down trendline, and The 61.8% Fibonacci Retracement of the April-August 2015 decline This breakout should open up considerably more upside for the KOSPI. The 78.6% Fibonacci Retracement of the April-August 2015 decline, near the 2100 level, may offer some resistance. However, with the more serious resistance near 2050 cleared, a potential path to its April 2015 highs near 2170 is not unreasonable if the breakout is successful. Of course, that last caveat is always the catch. If weve learned anything from global markets in the last half decade or so, it is that theyve demonstrated a considerable proclivity for false breakouts and breakdowns. Therefore, when approaching breakouts, one should do so with a trust but verify attitudeor, perhaps, dont trust but verify. That said, we have witnessed more than a handful of successful breakouts over the past few months, e.g., banks, FTSE-100, etc., so perhaps that is more reason to resist dismissing this breakout. For U.S. investors, a better reason to dismiss it, as always, is the difficulty in identifying a reliable vehicle in which to exploit the move.
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