How far will it rebound? We did a technical analysis

Summary

Executive Director Park Se-ik analyzes the recent sharp drop in Korean markets, arguing it is not a structural bear market but a Korea-specific panic. Using technical analysis, he identifies a bottom formation with long lower shadows and projects a rebound to 7,300–7,800 on the KOSPI. He highlights a Chesley AI buy signal and recommends leveraged long positions. He also sees the 30% drawdown in the Philadelphia Semiconductor Index as a buying opportunity.

• Korean panic sell-off is not a global crisis; US markets remain stable.
• KOSPI weekly chart shows a long lower shadow bottom, similar to August 2024.
• Fibonacci retracement targets: 7,300 (50%) and 7,800 (62%).
• Chesley AI aggressive-type buy signal triggered with strong historical returns.
• Recommends entering Korean indices with leverage based on the signal.
• Philadelphia Semiconductor Index fell ~30%; historically a staggered buying opportunity.
• AI cycle still intact; no severe semiconductor winter occurred.