Market Analysis Wednesday 29th of May

ANALYSIS 29-05-2013

Kospi Index Follow Asian Stocks End Up Others

South Korea’s stock market movements to trading on Tuesday finally shut up and continue the rise since last Monday. Rise driven by positive market movements majority stock markets in Asia on Tuesday, especially in the Japanese stock market.

Technically, the index in the trading session today, Wednesday (29/05) 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 262.27 and 263.55. If it fails at 260.30, then the next index is expected to tend to retest the 258.57 support level and continue up the possibility of being in the 257.36 area.

Euro Sink Positive U.S. Data

The greenback rallied against the euro after U.S. economic data stronger than expected prompting speculation that the Federal Reserve will soon slow down the pace of bond purchases.

Technically, the trading session today, Wednesday (29/05), the pair euro dollar likely to move in a negative trend.

The weakening Euro is mainly expected to immediately reexamine the minimum support at 1.2733 and 1.2651 maximum. Meanwhile, if the euro is able to break and hold above 1.2849, then another alternative scenario the chance to test Euro Resistance at 1.2940 and 1.3027 area.

Gold futures prices and LLG Weakens Despite An Increase in Demand Physical

At the close of trading early this morning and LLG gold futures prices appear to have decreased again, although slightly up from the lowest level that could be achieved in the trading session (29/05).

Technically, gold at today’s trading session on Wednesday (29/05) 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 ​​1346.43 and re-test the maximum level of 1322.69. However, if the price of gold is able to break and hold above 1384.70 then estimated the price of gold could potentially test the Resistance 1411.36 and 1437.19.