Market Analysis Thursday 23th of May

ANALYSIS 23-05-2013

The Hang Seng Index close lower, Profit Taking Pressure

Hong Kong shares to trading on Wednesday closed lower and consolidate after last Tuesday has increased significantly. The weakening of the Hong Kong stock movement triggered by the negative sentiment of rampant profit-taking by investors.

Technically, the index in the trading session today, Thursday (23/05) is likely to strengthen, test positive trend. On the M15 chart bullish hammer berformasi 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 23 360 and 23452. If it fails in 23227, we then estimated the index tends to retest the support level of 23110 and continued up to the possibility of being in the area of ​​23 012.

Sterling Hit By Retail Sales Data

Sterling fell to a 7-week lows versus the U.S. dollar after a sharp decline in retail sales surprised on the data stoked fears that the Bank of England will ease policy further in the coming months.

Technically, the trading session today, Thursday (23/05), Sterling couple bucks a chance to move in a negative trend.

Sterling weakening primarily expected soon reexamine the minimum support at 1.4864 and 1.4748 maximum. Meanwhile, if Sterling is able to break and hold above 1.5023, then another alternative scenario that Sterling has an opportunity to test the existing Resistance 1.5141 and 1.5253 area.

Gold Up Back With The Speculation

Gold rose amid speculation that the U.S. Federal Reserve chief signaled the possibility of the need for ongoing stimulus in the country with the largest economy in the world, to counter the further outflow of investors holdings.

Technically, gold in the trading session today, Thursday (23/05) potential reversal, tested positive trend, but prone to profit taking. Indicator RSI resistance likely to re-test the bullish channel and into the area, but the Bollinger Bands are starting to shrink, thus giving impetus to gold to the downside.

Estimated gold price immediately prior to test resistance at least in the area of ​​1394.36 and re-test the maximum level of 1417.66. However, if the gold price could not break and stays below 1364.60 then estimated the price of gold has the potential to test Support the 1338.11 and 1317.21.