Market Analysis Tuesday 21th of May

ANALYSIS 21-05-2013

Corrected Kospi index, North Korea Missile Launch Close Up

After a rally in a few days, the South Korean stock market trading Monday back arin had weakened the movement. Predictions about the 2000 level breaches will apparently still fail basis points after today’s market pressures faced by the concerns of tension on the Korean Peninsula after North Korea launched the missile nearby.

Technically, the index in the trading session today, Tuesday (21/05) 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 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 256.78 and 254.81. If it fails at 259.40, then the next index is expected to tend to retest the 261.49 resistance level and continue up the possibility of being in the 263.45 area.

The euro exchange rate against the U.S. Dollar Rebound

After a week on the trading moves down yesterday, the Euro exchange rate on Monday strengthened against the U.S. dollar. Opened at 1.2829 in early trading (00:00 GMT), the currency has been urging the U.S. dollar around + about + 36 pips or 0.28% and the value of rolling seemed to be in the range of 1.2865.

Technically, the trading session today, Tuesday (21/05), the pair euro dollar likely to move in a negative trend.

The weakening Euro is mainly expected to immediately reexamine the minimum support at 1.2714 and 1.2592 maximum. Meanwhile, if the euro is able to break and hold above 1.2867, then another alternative scenario the chance to test Euro Resistance at 1.2978 and 1.3086 area.

Gold Continuing Decline

Metal became victims of a massive sale on Monday, dragged down gold with him, as a stronger U.S. dollar and with investors becoming more cautious towards precious metal as an alternative investment.

Technically, gold in the trading session today, Tuesday (21/05) 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 ​​1421.66 and re-test the maximum level of 1448.05. However, if the gold price could not break and stays below 1388.30 then estimated the price of gold has the potential to test Support the 1356.11 and 1332.27.