Yuanta Securities analyzed on the 21st that the KOSPI index has broken through an important resistance level and still has room for further gains.

Researcher Jeong In-ji stated in a report on the same day, "During the rise on the previous day (20th), the KOSPI index broke through the upper resistance line of the ascending triangle pattern formed since last March, showing potential for additional gains," adding, "Calculating the channel target since the beginning of the year, it is around the 2900-point level, which also acted as an important turning point during the 2021 decline."

Researcher Jeong noted, "Although the recent rise was strongly led by the electrical and electronics sector index, which may cause some concern, looking at the divergence indicator, the electrical and electronics sector still has short-term upside potential."

He further explained, "When the mid-term peak was formed since early 2023, the 60-day divergence of the electrical and electronics sector index was mostly around 110%. Currently, the 60-day moving average-based divergence of the electrical and electronics sector index is 105.41%."

Considering the supply and demand trends in the derivatives market, he also analyzed that foreign investors appear to be placing emphasis on 'index rise.' Previously, foreign investors engaged in simultaneous selling of spot and futures during the mid to late May decline. Since June, they have switched back to simultaneous buying, expanding the gains so far.

Researcher Jeong said, "In an uptrend, foreign investors' futures positions fluctuate between neutral and certain high levels while maintaining a net buying state," adding, "Currently, the cumulative net buying is about 48,000 contracts, and in March, a high level was formed at around 70,000 contracts, indicating there is room for additional buying."

He continued, "The important point is that if the decline expands, it creates a structure with unlimited losses," and added, "It can be inferred that foreign investors view the possibility of a sharp drop as the lowest and place more weight on sideways movement or a sharp rise."