The South Korean stock market posted an astonishing rise in the first half of the year, driven largely by the artificial intelligence-related semiconductor boom that benefited both Samsung and SK Hynix. As foreign investors became net sellers, the role of local retail investors has become increasingly prominent in recent times. However, the introduction of leveraged ETFs tracking a single stock further exacerbated the already mounting volatility in South Korea’s stock market. Following a sharp rally, a reversal occurred in mid-June, followed by a significant correction in July. In light of these developments, we examined what might happen next on the South Korean stock market.
The European defense sector has come to the forefront in our momentum-based screening list. European companies that stand to benefit from rising defense spending remain the focus of investor attention. Based on our screening, two French companies—Dassault Aviation and Thales—have come into focus. As a manufacturer of Rafale fighter jets and Falcon business jets, Dassault Aviation is a key player in the global aviation industry, while Thales is one of the leading suppliers of defense electronics, radar, communications, and cybersecurity systems. The technical outlook for both stocks has been favorable recently, and significant opportunities may arise based on the technical patterns that have formed. As a result, it may be worth keeping an eye out for long entry opportunities in these stocks in the near future.
The index is approaching the 150,000 “dream threshold.” The rally that began in early June has not yet shown any signs of exhaustion or a reversal pattern, but strong resistance could bring it to a halt. MOL: The rally has continued, and the stock is now trading around 4,688. No reversal pattern is visible here either. Richter: Four days ago, it broke out of its downward correction trend and issued a buy signal again. Magyar Telekom: Following the new high, we saw stronger profit-taking; at levels above 2,800, the selling pressure appears strong. Opus: The price has broken out of the downtrend, but a break above 375 is needed for a structural shift. Rába: It remains in a downtrend; until we see a strong, high-volume up day that closes above the trendline, the direction will not be able to change.
There will be no analysis next week due to vacation. The next analysis will be published on August 25, 2026.
The uptrend remains intact and healthy. Above the thin green trendline, the 150,000 level is considered strong resistance, which could bring the rally to a halt. The uptrend lies at the natural level of 137,500; a break below this level could trigger a trend reversal.
Resistance levels: 150,000; 156,250.
Support levels: 137,500; 134,375; 131,250.
The upward momentum began to stall around the 4,688 level. The uptrend line is still far off, but a minor correction could occur again in this stock. The 4,375 level should now act as support if the uptrend is to continue pushing the price higher. The 5,000 level could also come into play as long as the trend remains intact.
Resistance levels: 4,843; 5,000.
Support levels: 4,375; 4,062; 3,750; 3,438.
We saw a trend breakout four days ago; the price closed above 12,185, signaling a long position. The target price could fall to near the previous highs at a minimum, but it should reach around 13,125. Even in the event of a pullback, it’s worth favoring long positions.
Resistance levels: 12,500; 13,125; 13,438; 13,750.
Support levels: 11,250; 10,940; 10,625; 10,313; 10,000; 9,688; 9,065; 8,750.
The rally managed to reach a new high, but the key level of 2,813 could prove to be very strong resistance for quite some time. A strong sell-off serves as a warning that the zone above 2,800 is beginning to form a strong resistance level. A break below the natural support level at 2,578 would mark a new swing low, which could lead to a change in trend.
Resistance levels: 2,734; 2,813.
Support levels: 2,500; 2,375; 2,250.
The stock traded below the 375 level but had already broken out of the downtrend. A move above 375 could break the series of lower swing highs. A long trend could develop above 375, while the downtrend could continue below 344.
Resistance levels: 406; 437; 468; 500
Support levels: 343; 313; 281; 250; 218.
It continues to inch downward along the downtrend; the downtrend pattern has not yet reversed. A break above the red trendline would be needed for the bulls to take control. However, a reversal would require several days of upward movement accompanied by higher volume. Until that happens, it’s best to wait before opening long positions.
Resistance levels: 2,500; 3,125; 3,750.
Support levels: 1,875; 1,563; 1,250.
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