Market Analysis Thursday 16th of May

ANALYSIS 16-05-2013

Nikkei index soars, Highest Since December 2007

Japanese stocks for day trading closed Wednesday rose and touched its highest level since 2007 after the yen weakened against the dollar back into a solid boost to the movement of the Japanese stock market in recent times.

Technically, the index in the trading session today, Thursday (16/05) is likely to strengthen, test positive trend. On the M15 chart bullish hammer formed has provide opportunities 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 15 352 and 15440. If it fails in 15170, we then estimated the index tends to retest the support level of 15039 and continued up to the possibility of being in the 14916 area.

BoE Inflation report relieves Sterling

Sterling traded higher against almost all of its 16 major counterparts after the Bank of England raised the outlook for the UK economy. In its quarterly inflation report, the BoE raised its growth forecast to 0.5% for the quarter from 0.3% in the first quarter and expects inflation to peak 3.1% in the 3rd quarter, lower than projected in February. Cable also drawn support from the drop in jobless claims in April.

Technically, today’s trading session on Thursday (16/05), Sterling couple bucks a chance to move in a positive trend.

Strengthening of Sterling primarily expected soon reexamine the minimal resistance at 1.5316 and 1.5373 maximum. Meanwhile, if Sterling was unable to break and stays below 1.5231 then another alternative scenario that is likely to test support Sterling’s in the area of ​​1.5170 and 1.5120.

Gold futures tumbles below $ 1.400

Gold futures fell below $ 1,400 an ounce, continuing the longest fall in nearly three months, with the U.S. dollar rally eroded demand for the metal as an alternative investment. Silver fell to a three-week low.

Technically, gold at today’s trading session on Thursday (16/05) 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 ​​1353.15 and re-test the maximum level of 1322.09. However, if the price of gold is able to break and hold above 1395.95 then estimated the price of gold could potentially test the Resistance 1427.29 and 1454.34.