South Korean Won Outlook

South Korean Won Outlook

South Korean Won Outlook

Candlesticks

A big black candle occurred.

This is bearish, as prices closed significantly lower than they opened.

If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.

During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

South Korean Won closed down -11.280 at 1,147.810. Volume was 7% above average (neutral) and Bollinger Bands were 33% narrower than normal.

Open High Low Close Volume___
1,159.0901,161.0301,147.1901,147.810 15,582

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 1,147.48 1,159.53 1,146.05
Volatility: 9 14 13
Volume: 13,901 15,645 13,110

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

South Korean Won is currently 0.2% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of KRW= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on KRW= and have had this outlook for the last 5 periods.

South Korea’s exports jumped 19.3 percent on-year in the first 10 days of this month led by petrochemical goods, semiconductors and automobiles, government data showed Saturday.

Overseas shipments from March 1-10 were estimated at US$1.43 million after hitting a five-year high in the previous month, the Korea Customs Service said in a statement.

“Rising oil prices in recent months have boosted local exporters who had been suffering from slumping oil prices and slowing demand in global markets,” a KCS spokesman said.

Exports of petrochemical goods soared 109.7 percent in the 10 days from the same period of 2016, it said.

Momentum

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 65.5555. This is not an overbought or oversold reading. The last signal was a sell 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 49.01. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 51 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 67. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 19 period(s) ago.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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