Market Analysis Tuesday 4th of June

ANALYSIS 04-06-2013

Kospi Index Weakens, Makin Steer 2000 Points Level

Negative movement returned at the South Korean stock market. After touching a 2000 basis points last week, the movement of stock is declining due to the negative sentiment of the bearish trend that occurred in the area of ​​Asian bourses such as Hong Kong stocks and Japan.

Technically, the index in the trading session today, Tuesday (04/06) 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 259.63 and 258.33. If it fails at 261.95, then the next index is expected to tend to retest the 263.86 resistance level and continue up the possibility of being in the 265.33 area.

Aussie Rebound Sharply Ahead of Interest Rate Determination

Movement of the Australian dollar this morning (06/04) was recently up pretty strong, and the observed elevated currency against major currencies after the U.S. dollar opened at 0.9616 in early trading (00:00 GMT). Until this morning the Australian dollar climbed about 138 pips or + around + 1:43% and rolling was observed in the value 0.9754.

Technically, today’s trading session on Tuesday (04/06), the pair euro dollar likely to move in a positive trend.

A stronger Euro is mainly expected to soon re-test the resistance at 0.9871 minimum and maximum 0.9963. Meanwhile, if the Euro was unable to break and stays below 0.9748 then another alternative scenario the Euro likely to test support at the 0.9637 area and 0.9564.

Encouraging Hedge Funds Bullish Gold Bets

The Hedge Fund raising bets on gold rally most in two months as the U.S. economy expanded less than expected, prompting speculation that the Federal Reserve will keep stimulus speed.

Technically, gold in the trading session today, Tuesday (04/06) 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 ​​1436.35 and re-test the maximum level of 1452.86. However, if the gold price could not break and stays below 1411.10 then estimated the price of gold has the potential to test Support the 1394.09 and 1379.52.