The KOSPI Composite daily chart analysis highlights the beginning of a new trend forming via an impulsive Elliott Wave structure. The index has completed its gray wave 2 correction and is currently progressing into navy blue wave 1 within the larger gray wave 3 formation. This setup points to the start of a fresh impulse wave in a broader trending pattern on higher timeframes.

Navy blue wave 1 marks the early phase of this upward move. It typically features building momentum as the market defines its trend direction. The end of gray wave 2 sets the foundation for this leg, which is expected to show steady growth, though not yet explosive, as it initiates the trend. The current formation suggests the upward movement will unfold progressively before the first major correction takes place.

The next expected phase is navy blue wave 2, which will follow once wave 1 is complete. This correction is likely to create a pullback, potentially offering a good entry point before a stronger wave 3 begins. The daily timeframe gives a key perspective, indicating this phase is the start of a longer-lasting trend.

Traders should watch wave 1’s development, especially signs like gradually increasing volume and consistent price advancement. The broader move into gray wave 3 suggests rising momentum ahead, making this early stage important for positioning. Technical signals and price action will be vital for confirming the wave progression.

The analysis supports a bullish view during this initial impulse phase while also preparing for a pullback with potential buying opportunities. Observing price behavior closely will help determine when wave 1 finishes and wave 2 starts.

KOSPI Composite Wave technical analysis

Function: Trend.

Mode: Impulsive.

Structure: Navy Blue Wave 1.

Position: Gray wave 3.

Direction next higher degrees: Navy blue wave 1 (started).

Details: Gray wave 2 appears complete; navy blue wave 1 of 3 is now active.

The KOSPI Composite weekly chart analysis shows the start of a new upward impulse wave within a broader bullish structure. The index has finished its gray wave 2 correction and moved into navy blue wave 1, initiating the larger gray wave 3 pattern. This formation marks the early phase of a new upward impulse with potential for notable momentum in the coming weeks.

Navy blue wave 1 signals the beginning of this bullish move. It often features steady price gains as the market begins to confirm a directional trend. With the correction phase now behind, this wave is expected to build momentum gradually before stronger moves occur in the following waves. The weekly timeframe supports the view that a medium-term trend is forming.

The current setup indicates that the index is entering what may evolve into a strong gray wave 3, with navy blue wave 1 as its first sub-wave. Wave 3 phases are typically the most dynamic in Elliott Wave theory, suggesting potential for significant trending action. Traders should look for classic wave 1 signs, such as improving indicators and rising volume.

Once navy blue wave 1 concludes, a corrective navy blue wave 2 is anticipated before the trend continues higher into wave 3. The weekly outlook emphasizes the importance of confirming this wave sequence through price movements and technical signals. This scenario suggests that the KOSPI could be entering a favorable phase for trend-following strategies.

Technical analyst: Malik Awais.

KOSPI Composite Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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