ANALYSIS 09-04-2013
The Hang Seng Index yesterday Flat Moves
Hong Kong shares to trade on Monday closed flat. Lackluster movement indicated by the market due to hold a position of action undertaken by the investors due to its alarming security situation on the Korean peninsula.
Technically, the index in the trading session today, Tuesday (09/04) is likely to strengthen, test positive trend. On the bullish hammer formation M15 chart gives an opportunity for the index to move upside. However, the volume is likely to increase, as well as an early indication of a bullish index. In addition, RSI, on the M15 chart, is in the oversold area, cue upside.
Expected, the index tested the first resistance level of 22012 and 22166. If it fails in 21783, we then estimated the index tends to retest the support level of 21629 and continued up to the possibility of being in the 21451 area.
Euro Strengthens Against Greenback
On foreign exchange trading, the euro strengthened against the greenback on Monday after the results of bond purchases in the entire euro zone continues to decline.
Technically, today’s trading session on Tuesday (09/04), the pair euro dollar likely to move in a positive trend.
A stronger Euro is mainly expected to soon re-test the resistance at 1.3185 minimum and maximum 1.3264. Meanwhile, if the Euro was unable to break and stays below 1.3058 then another alternative scenario the Euro likely to test support at the 1.2967 area and 1.2873.
Gold Prices Down 0.2% Fueled Back Strengthening U.S. Dollar
Precious metals prices mixed on Monday, with gold and silver prices fell while the price of platinum, palladium and copper rose.
Technically, gold at today’s trading session on Tuesday (09/04) potentially bearish, test returned negative trend, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Band which began to widen, thus giving impetus to gold to the upside.
Estimated gold price immediately prior to test support at least in the area of ​​1558.21 and re-test the maximum level of 1548.89. However, if the price of gold is able to break and hold above 1573.75 then estimated the price of gold could potentially test the Resistance 1585.81 and 1594.42.