Market Analysis of Tuesday 16th April 2013

ANALYSIS 16-04-2013

The Nikkei slips, impact of decline in China’s GDP

Japanese shares for trading on Monday closed lower. Decline in China’s GDP for the first quarter of this year by 0.2% to 7.7% to be the main indicator of weakening markets in addition to the Japanese government plans to devalue the yen in order to lift the performance of the Japanese currency.

Technically, the index in the trading session today, Tuesday (16/04) 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 12971 and 12925. If it fails in 13045, we then estimated the index tends to retest the resistance level of 13097 and continued up to the possibility of being in the 13141 area.

                     

Aussie Weakens Despite Improved Economic Data

Monday, the Australian dollar hit yesterday weakened to reach the 1.0455 dollar. Aussie fell sharply compared to the close of trading last weekend in the level of 1.0506 dollars.

Technically, the trading session today, Tuesday (16/04), the Aussie dollar pair has a chance to move in a negative trend.

Weakening Aussie primarily expected soon reexamine the minimum support at 1.0230 and 1.0189 maximum. Meanwhile, if the Aussie able to break and hold above 1.0308, then another alternative scenario the chance to test Euro Resistance at 1.0354 and 1.0391 area.

                 

LLG Gold prices dropped 19% in two days, the lowest to Two Years

LLG gold prices tumbled 14% in two days, down 5% on Friday, and on Monday fell 9%, so the price to the lowest level in 2 years.

Technically, gold at today’s trading session on Tuesday (16/04) 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 ​​1284.53 and re-test the maximum level of 1257.56. However, if the price of gold is able to break and hold above 1332.60 then estimated the price of gold could potentially test the Resistance 1367.43 and 1399.39.