Market Analysis of Monday 25 March 2013

ANALYSIS 25-03-2013

Hang Seng doldrums Since Morning

Hong Kong shares to trade on Friday last week recorded a decline. Negative movement resumed after investors prefer to sell stocks after several companies in the mining sector is reporting a profit decline in the fourth quarter of last year. Previously obtained from the pressure-induced weakening of the U.S. stock market due to the falling shares of Oracle Corp quarterly profit due to falling.

Technically, the index on the trading session today, Monday (25/03) likely to weaken, test negative trends, the impact of Wall Street. In M15 chart formidable bearish engulfing provide opportunities 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 oversold area, cue upside.

It is estimated, the index tested the first level Support 21 986 and 21 870. If it fails at 22 140, we then estimated the index tends to retest the resistance level of 22,274 and is likely to be followed up in the area of ​​22 367.

                         

Euro Raised news Cyprus-EU Agreement

In today’s trading the euro movement seemed eager (25/03). The euro rose against the 16 main rivals, especially the U.S. dollar. The increase came after the euro was news that Cyprus has reached a basic agreement with the European Union on security assistance funding to the island nation.

Technically, today’s trading session on Monday (25/03), the pair euro dollar likely to move in a positive trend.

The strengthening of the Euro is mainly expected to immediately re-examine the minimum resistance at 1.3127 and 1.3202 maximum. Meanwhile, if the Euro was unable to break and hold below 1.3042 then another alternative scenario the Euro likely to test the existing Support 1.2982 and 1.2921 area.

                          

LLG Gold Price Dropped $ 6.95

On Monday, gold prices rose 60 cents LLG opened to $ 1,608.10. After one week the Cyprus problem has not been completed, but on Friday there was a way out, with the rejection of the imposition of a tax on deposits, the ECB will provide assistance, but awaiting approval from European Union countries, meeting conducted on Monday, so the price of gold fell back .

Technically, gold at today’s trading session on Monday (25/03) potentially bearish, test returned negative trend, but prone to reversal. RSI indicator tends to re-test Support channel and towards the oversold area, but the Bollinger band 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 ​​1597.63 and re-test the maximum level of 1589.97. However, if the price of gold capable of break and held above 1608.55 then predicted the gold price could potentially test the Resistance 1617.41 and 1624.83.