Market Analysis Wednesday 22th of May

ANALYSIS 22-05-2013

The Hang Seng Index Closed Down Thin Post-Rally

Hong Kong shares to trading on Tuesday closed lower. Such trading only since morning, market movements tend to be clumsy compared with the movement yesterday. The majority of investors prefer to take action to hold the position and profit-taking amid lack of economic sentiment data released Tuesday.

Technically, the index in the trading session today, Wednesday (22/05) 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 23 381 and 23 448. If it fails in 23290, we then estimated the index tends to retest the support level of 23 216 and is likely to be continued until the 23157 area.

Why fall in UK Sterling Significant?

Consumer Price Index (CPI) in the UK in April 2013 rose 2.4%, down from 2.8% in March 2013. UK consumer price inflation fell last month for the first time since September due to falling prices of gasoline and diesel.

Technically, the trading session today, Wednesday (22/05), Sterling couple bucks a chance to move in a negative trend.

Sterling weakening primarily expected soon reexamine the minimum support at 1.5067 and 1.5002 maximum. Meanwhile, if Sterling is able to break and hold above 1.5167, then another alternative scenario that Sterling has an opportunity to test the existing Resistance 1.5245 and 1.5314 area.

Gold Down As Dollar Gains; Instructions Awaited Fed

Gold futures edged down on Tuesday, the dollar strengthened against the backdrop when investors seek petunjuka again from the U.S. Federal Reserve at the time of withdrawal of the policy stimulus the central bank.

Technically, gold at today’s trading session on Wednesday (22/05) 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 ​​1347.48 and re-test the maximum level of 1326.28. However, if the price of gold is able to break and hold above 1378.10 then estimated the price of gold could potentially test the Resistance 1399.46 and 1420.66.