Market Analysis Tuesday 14th of May

ANALYSIS 14-05-2013

HK Shares End Down As Profit-Taking, Warm Chinese data

Hong Kong stocks succumbed to profit taking on Monday, three weeks after the index rising streak. The blue-chip Hang Seng Index fell 331.41 points, or 1.4%, to 22989.81. Trade volume reached 59.24 billion Hong Kong dollars (U.S. $ 7.63 billion), up from HK $ 55.55 billion last Friday.

Technically, the index in the trading session today, Tuesday (14/05) likely to weaken, test negative trends, the impact of Wall Street. On the bearish engulfing formation M15 chart gives an opportunity for the index to move downside. However, the volume is likely to increase, 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 support level ie 22714 and 22589. If it fails in 22878, we then estimated the index tends to retest the resistance level of 22 994 and continued until the area is likely to be 23 107.

Translucent 100 yen, Bablas to 101, Up to 102

The U.S. dollar and the euro approached its highest for years against the yen. The yen fell below 102 level after the G7 meeting is completed.

Technically, today’s trading session on Tuesday (14/05), the dollar yen pair has a chance to move in a positive trend.

A stronger yen primarily expected soon reexamine the minimal resistance at 103.04 and 104.08 maximum. Meanwhile, if the Yen was able to break and stays below 101.65 then another alternative scenario that is likely to test support Yen’s in the area of ​​100.64 and 99.75.

Gold Prices Down Along The decline in ETP Gold Ownership

Gold prices to trade currently have dipped along with the report that gold holdings in ETP Holdings assets for the first weekend in May decreased by 0.6% to 2228 metric tons. Decline in gold holdings indicate a wave of selling or profit taking by investors after briefly rising gold prices in the month of April.

Technically, gold at today’s trading session on Tuesday (14/05) 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 ​​1410.21 and re-test the maximum level of 1395.29. However, if the price of gold is able to break and hold above 1434.50 then estimated the price of gold could potentially test the Resistance 1452.93 and 1470.94.