Market Analysis Tuesday 28th of May

ANALYSIS 28-05-2013

Kospi Index Closed Up, Led To 2000 pts

South Korean stock market on Monday closed up and managed to escape from loneliness due to weakening trade due at least global fundamental data released earlier this week.

Technically, the index in the trading session today, Tuesday (28/05) 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 260.53 and 261.78. If it fails at 258.80, then the next index is expected to tend to retest the 257.44 support level and continue up the possibility of being in the 256.27 area.

Dollar Yen Hovering Low, Focus Data U.S.

In trading on Monday, the opening price of USD / JPY at 101.08. The movement of this currency pair narrow natural increase, strengthening begins to peak levels at 101.22 and then pulled back up to the basic level of 100.73. Closing price at 101.06, marked by long-legged doji candle.

Technically, today’s trading session on Tuesday (28/05), the dollar yen pair has a chance to move in a positive trend.

A stronger yen primarily expected soon reexamine the minimal resistance at 102.88 and 103.75 maximum. Meanwhile, if the Yen was able to break and stays below 101.62 then another alternative scenario that is likely to test support Yen’s in the area of ​​100.79 and 100.01.

Gold Recovers from the ground up

Gold changed direction and jumped back over the last week. Recovery of gold and silver along with the appreciation of major currencies like the Euro and the Japanese Yen against the U.S. Dollar.

Technically, gold in the trading session today, Tuesday (28/05) 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 ​​1424.09 and re-test the maximum level of 1447.54. However, if the gold price could not break and stays below 1391.50 then estimated the price of gold has the potential to test Support the 1365.81 and 1347.34.