Daily Analysis of Gold Market 31 May 2013 - by Jordan Lambert

Jalatama Loco London (XULF) Report 31/05/2013

XULF Report

Finally gold bulldozed its way through the mighty $1400 resistance yesterday but did have a dip back below after Italy’s borrowing costs increased in a 10 year bond auction. Although the uptrend did resume helped by a slightly downwardly revised US GDP number that weakened the dollar against most major currencies. Japan’s stimulus programme continues to pay dividends evident in Industrial Output that was more than double estimates and this has provided a bit of support for gold in its newly found uptrend.

As I write the market on the 30 minute chart is tinkering on the overbought territory according the RSI so be aware of possible pullbacks. The bulls will have more confidence now the formidable $1400 level has been broken therefore pullbacks present good long opportunities. Any bounce off the bullish trendline illustrated by the red line offers a good low risk entry. If price pulls back and breaks the trendline this would indicate the trend maybe weakening. Fibonacci Retracement levels are very useful for assessing the strength of a trend and when it has come to an end. Often if price retraces and breaks the 61.8% Fib level this indicates the current trend is very weak and the market will probably become range bound. The 61.8% fib level of this trend is at $1397.50 therefore a dip back below this would probably end the bulls hope of a continuing trend and more highs in the short to medium term. We are currently experiencing minor resistance at $1420 which was previous support that was broken on 10th May after a move through this level target levels are $1445 and medium target is $1488 that is the neckline of a potential double bottom on the daily chart. The main data to watch out for today are German Retail Sales at 2pm and US Income and Spending at 8:30pm.

Market Analysis Friday 31th of May

ANALYSIS 31-05-2013

The Nikkei index weakened due to strengthening Yen against Dollar

Japanese stock exchange to trade Thursdays yesterday recorded a significant decline. Weakening exchange movement was caused by a decline in the shares of exporters that are not caused by the strengthening of the yen against the U.S. dollar, but also due to the decline in sales turnover reports Honda Motor fell 3.4% in the first quarter ago.

Technically, the index on the trading session today, Friday (31/05) chance to weaken, test negative trends, browse Wall Street. On the bearish engulfing formation M15 chart provides an opportunity for the index to move downside. However, the volume tends to rise, early indications bullish index. In addition, RSI, on the M15 chart, selling in saturated areas, signal upside.

Partly, the index test in advance Support level ie 12910 and 12326. If failed in the 13835, the estimated index tend to test further back resistance level that is 14 465 and the possibility of being extended to 14 990 in the area.

Industry performance Chance Rise, Yen strengthened

Movement of Japanese yen in forex trading this morning (05/31) observed indicate movement strengthened against the U.S. Dollar. USDJPY currency pair opened at 100.91 in early trading range (00.00 GMT) and then down around -14 pips or about -0.13% and the rolling observed in the 100.77 range. This indicates strengthening of the U.S. Dollar versus the Yen.

Technically, today’s trading session on Friday (31/05), the dollar yen pair had the opportunity to move in a positive trend.

Strengthening of yen mainly predicted back soon test resistance at 102.67 ie the minimum and maximum of 103.80. And as, if not able to break yen and 100.93 survive under the alternative scenario that is another chance to test Support yen at 99.67 and 98.63 area.

Gold price pierces $ 1.400 per ounce by the weakening U.S. dollar

The U.S. dollar weakened in trading Thursday (30/05) depressed U.S. economic data indicate growth in the first quarter is not as good as previously reported, except that there is an increase of unemployment claims. This is the key driver of gold prices this time to penetrate the highest price in two weeks.

Technically, gold trading session today, Friday (31/05) reversal potential, tested positive trend, but prone to profit taking. RSI indicators tend to re-test resistance bullish channel and head area, but Bollinger band began to shrink, giving impetus to gold to the downside.

Chance of gold price immediately prior to test resistance at least in the area and re-test 1443.33 maximum level of 1465.18. But if the price of gold can not afford to break and survive under 1415.25 then predicted the gold price potentially testing Support ie 1391.88 and 1370.74.

Daily Analysis of Gold Market 30 May 2013 - by Jordan Lambert

Jalatama Loco London (XULF) Report 30/05/2013

XULF Report

Writing this report this week feels like a broken record as it is just a repeat of previous analysis because the market continues to be range bound. The Organization for Economic Cooperation and Development lowered global growth forecasts and the IMF cut its growth estimate for China making investors trim down risk in equity markets. It does make one doubt the sustainability of the US equity rally if there is no growth or slowing growth elsewhere around the globe. Contrary to popular belief if we do see an equity correction triggered by global growth concerns and a tapering of stimulus gold could make some gains as fund managers diversify into commodities to manage the risk and uncertainty.

Gold is again hovering a few dollars under $1400 and has tested as high as $1397.80 this morning but has been beaten away by the bears for the umpteenth time. The 30 minute chart shows a bullish channel that developed yesterday which manifests the short sentiment. A sharp spike up in price seems to be easily defended by the bears therefore a good indication of a much awaited breakthrough will be if price steadily raises at a sustainable gradient and we see tight consolidation just under $1400. When taking into account the potential rewards of an upward breakout attributed to the prolonged building of pressure mainly between $1380 to $1400 it is worth taking a risk and buying on a pullback. The logical level for a stop loss is below the previous higher low of $1388 which is also below the bottom side of the channel. Short opportunities will arise if Tuesday night’s low of $1373 is broken. The reports to watch out for today are US GDP at 8:30pm and US Pending Homes at 10pm which could shift this static market if the technical fail to.

Market Analysis Thursday 30th of May

ANALYSIS 30-05-2013

HK Shares End Lower Depressed Profit Taking

Hong Kong shares ended lower on Wednesday on profit taking after two days of gains, and investors remain cautious on the outlook for the Chinese economy.

Technically, the index in the trading session today, Thursday (30/05) 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 22110 and 22023. If it fails in 22238, we then estimated the index tends to retest the resistance level of 22351 and continued up to the possibility of being in the 22443 area.

Euro Helped German Inflation Data

The euro turned higher against the U.S. dollar after data showed German inflation that exceeded expectations. Inflation in Germany drove at an annual rate of 1.5% in May, faster than the estimated 0.2%.

Technically, today’s trading session on Thursday (30/05), the pair euro dollar likely to move in a positive trend.

A stronger Euro is mainly expected to soon re-test the resistance at 1.3120 minimum and maximum 1.3235. Meanwhile, if the Euro was unable to break and stays below 1.2945 then another alternative scenario the Euro likely to test support at the 1.2820 area and 1.2709.

Gold Up On Strong Demand Physical, Decrease in Equity

Gold rose around 1% on Wednesday, reversing losses from the previous session as the decline in the dollar and equities decline sparked buying of physical gold.

Technically, gold in the trading session today, Thursday (30/05) 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 ​​1435.33 and re-test the maximum level of 1458.96. However, if the gold price could not break and stays below 1391.25 then estimated the price of gold has the potential to test Support the 1363.65 and 1337.65.

Client Referral Offer

Refer a Friend and Receive $1800
.
.
.
If you recommend Jalatama Management to a friend which leads to them opening an account of $30000, we will reward you with $1800 worth of transaction fees.

Enriching Lives, Realizing Dreams! with Jalatama Management
www.jalatama.com.my

Promotion for New Accounts

$1800 Worth of Free Trades for New Accounts

We will rebate you 15 trades worth of transaction fees which equates to $1800, once you have funded a $30000 account and place a total of 15 trades.

Enriching Lives, Realizing Dreams! with Jalatama Management
www.jalatama.com.my

Daily Analysis of Gold Market 29 May 2013 - by Jordan Lambert

Jalatama Loco London (XULF) Report 29/05/2013

XULF Report

Despite US Consumer Confidence rising to a 5 year high gold is still range bound albeit the trading range has now been widened $9 due to the increase in volatility last night. Gold managing to hold ground, even though it dropped below short term support at $1382, shows that there is good demand for the metal. The $1400 level has become formidable resistance preventing the bulls from pushing gold higher. According to reports there are an increasing number of short positions by market participants, which although sounds bearish, could cause an intense rally if the bulls can trigger these short stops. The logical level for short stops will be just above the various resistance levels close to $1400 therefore a forceful attack at this level could deliver good results for the bulls.

Technically it’s more of the same story but the short term range has widened to $1373 to $1400 and the volatility caused another test of $1400 making a high of $1402 but was beaten down by the bears before firmly pushing through. There isn’t much to add from yesterday’s analysis in that the market is rather neutral. Bulls may find comfort in the fact that the medium term bearish trend has come to a halt but the market will not turn bullish until it convincingly crosses $1400. It should also be noted the parabolic has recently switched to a buy signal on the 4 hour chart which gives some more hope to the bulls. Support levels are now $1373 and $1354 (displayed by the blue lines) that could provide a bounce trade opportunity but carefully consider the fundamentals that would be forcing price lower to these levels before buying and always incorporate candlestick data. Economic data due out today is lacking the potential move the gold market with any sustained force but be aware Thursday’s calendar includes US Preliminary GDP and Pending Home Sales.

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.

Daily Analysis of Gold Market 28 May 2013 - by Jordan Lambert

Jalatama Loco London (XULF) Report 28/05/2013

XULF Report

Gold continues to be stuck in the $1382 to $1400 range building the pressure for a substantial breakout whenever that may occur. The bulls have attempted to test $1400 several times now but the wall of resistance seems to be too thick as there are minor resistances from $1397 to $1401 collectively building a very strong defence line for the bears. China’s Premier comments regarding the huge challenges his country faces amid slowing growth is another potential black cloud hanging over the equity rally causing investors to pause for breath and keep most markets range bound. It really feels like gold needs something to push its way out of this range, either to the upside or downside, as it has become clear the bulls need some impetus to push through $1400 whilst they are being too stubborn to step aside and let the bears win. That impetus could emanate from the US Consumer Confidence tonight at 10pm. A disappointing result should spark an equity sell-off and force gold up through $1400. On the contrary a good number is likely to cause the opposite effect and drop gold lower. The improving housing market in the US has increased consumer net wealth and showed signs of increases in consumer confidence and spending therefore the market will be eagerly anticipating more evidence of this.

From a technical perspective the setting is more bullish than bearish but this all depends on an upside breakout through $1400. The daily chart shows how the medium term bearish trend has lost momentum displayed by the lower pain momentum indicator that has broken its own trendline and price has now formed into an ascending triangle. This triangle pattern will have little value unless price breaks the upper side at $1400 but if it does it could yield significant price appreciation over the medium term. Do bear in mind that this ascending triangle isn’t in perfect set-up conditions as the usual set-up is for it to appear during a bull market however they can still produce good results in or after bear markets too. The market is likely to stay quiet until US Consumer Confidence tonight and if the result is a considerable difference to forecasts this could be the turning point for gold.

Market Analysis Tuesday 28th of May

ANALYSIS 28-05-2013

Kospi Index Closed Up, Led To 2000 pts

South Korean stock market on Monday closed up and managed to escape from loneliness due to weakening trade due at least global fundamental data released earlier this week.

Technically, the index in the trading session today, Tuesday (28/05) is likely to strengthen, test positive trend. On the bullish hammer formation M15 chart gives an opportunity 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 260.53 and 261.78. If it fails at 258.80, then the next index is expected to tend to retest the 257.44 support level and continue up the possibility of being in the 256.27 area.

Dollar Yen Hovering Low, Focus Data U.S.

In trading on Monday, the opening price of USD / JPY at 101.08. The movement of this currency pair narrow natural increase, strengthening begins to peak levels at 101.22 and then pulled back up to the basic level of 100.73. Closing price at 101.06, marked by long-legged doji candle.

Technically, today’s trading session on Tuesday (28/05), the dollar yen pair has a chance to move in a positive trend.

A stronger yen primarily expected soon reexamine the minimal resistance at 102.88 and 103.75 maximum. Meanwhile, if the Yen was able to break and stays below 101.62 then another alternative scenario that is likely to test support Yen’s in the area of ​​100.79 and 100.01.

Gold Recovers from the ground up

Gold changed direction and jumped back over the last week. Recovery of gold and silver along with the appreciation of major currencies like the Euro and the Japanese Yen against the U.S. Dollar.

Technically, gold in the trading session today, Tuesday (28/05) 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 ​​1424.09 and re-test the maximum level of 1447.54. However, if the gold price could not break and stays below 1391.50 then estimated the price of gold has the potential to test Support the 1365.81 and 1347.34.

Jalatama Loco London (XULF) Report 27/05/2013

XULF Report

Gold made an attempt to test resistance at $1400 last Thursday and has since been trapped in a range of $1382 to $1398. This indecision of gold’s next move is ascribed to the conflicting data and expectations of the effects of a diminishing monetary stimulus programme in the US, Japan’s resolute quantitative easing plan and its volatile impact on the bond market and the outcome of a slowdown in Chinese growth that seems to have been accepted by China’s President as a necessity to cool down its property market. All this information can have opposing effects on gold’s future direction which is why we are seeing tightly ranged trading for the last few days.

The 1 hour chart encapsulates the equal split between the bulls and the bears since Thursday as the red support and resistance lines show the $1382 to $1398 range. The Bollinger bands constriction and the ATR at $4 highlights the lower volatility since this range has established itself which are good conditions for a breakout. Another test of $1398 to $1401 should result in a breakthrough as this level has been tested 6 times now within the last week. There was a temporary break of caused by Ben Bernanke’s comments but for the purposes of chart analysis I will ignore this but be aware it could provide resistance at $1414 if a breakout does occur so this could be a feasible target level. If price fails to penetrate resistance we could see a breakout to the downside with $1381 being a possible short entry level and targeting the lower levels of the bigger range of $1354 to $1400. A breakout of this tight $16/$18 range should dictate the movement over this week so be poised to trade the breakout.

Market Analysis Monday 27th of May

ANALYSIS 27-05-2013

Kospi Index Closed Up Thin, lack of Fundamental Data

South Korean stock market trading Friday closed slightly increased. Negative movement occurred despite disconnected Friday fundamental data released quite minimal. The weakening of the U.S. stock market in overnight trade has led to the weakening of the exchange.

Technically, the index in the trading session today, Monday (27/05) is likely to strengthen, test positive trend. On the bullish hammer formation M15 chart gives an opportunity 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 259.10 and 260.14. If it fails at 257.80, then the next index is expected to tend to retest the 256.75 support level and continue up the possibility of being in the 255.85 area.

USD / JPY Week: Buy or Sell?

Latest Japanese Yen has many asking, especially as supported by the sudden increase in the desire to avoid risk. We do not expect sentiment to decrease the risk on an ongoing basis.

Technically, the trading session today, Monday (27/05), the dollar yen pair has a chance to move in a negative trend.

Weakening Yen primarily expected soon reexamine the minimum support at 99.86 and 99.32 maximum. Meanwhile, if the Yen is able to break and hold above 101.07, then another alternative scenario the chance to test Resistance Yen’s in the area of ​​102.11 and 102.93.

Gold down by U.S. Growth Signs Provide Cutting Stimulus

Gold fell for the third time in four days by signs of U.S. economic rebound arouse his attention the Federal Reserve will scale back monetary stimulus, eroded the appeal of precious metals as a store of value.

Technically, gold at today’s trading session on Monday (27/05) 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 ​​1351.12 and re-test the maximum level of 1327.94. However, if the price of gold is able to break and hold above 1385.95 then estimated the price of gold could potentially test the Resistance 1410.50 and 1431.51.

Jalatama Loco London (XULF) Report 23/05/2013

XULF Report

Fed Reserve Chairman Ben Bernanke’s comments caused extra volatility last night and eventually forced gold lower as it became clear Bernanke was intent on reducing stimulus if economic data showed improvements in the next few weeks. The FOMC’s meeting minutes also revealed that a number of officials were keen to taper the programme as early as June which now tips the power in favour of the hawks. There are many who believe that a diminishing stimulus programme will be bad for gold however do bear in mind any correction in equity markets should lead to fund managers switching more money to commodities to diversify which would benefit gold to some extent and maybe provide some support.

The market is certainly volatile at the moment and this can be illustrated on the 1 hour chart that shows how price has failed to develop any sustainable trend over the last 3 days. However a range is establishing itself, ignoring last night’s false breakout, from around $1354 to $1400 very similar to the sideways range that formed in the first week of May. Ranges can present opportunities for bounce trades at the support and resistance levels but candlestick information must be considered before trying such strategy. Bear in mind a bounce is more probably than a breakout if there is a substantial amount of time elapsed since the previous test of support/resistance. Also a bounce need not necessarily occur precisely on support/resistance. A shorter term opportunity could be when the $1370 neckline is complete for the double bottom that could yield an incline a few dollars. Another test of support around $1354 within the next 48 hours could lead to more declines and draw towards April’s low of $1321. There’s quite a lot of reports due out today to be aware of including Eurozone manufacturing and services PMI, US Jobless Claims and New Home Sales so trade carefully around these numbers.

Market Analysis Thursday 23th of May

ANALYSIS 23-05-2013

The Hang Seng Index close lower, Profit Taking Pressure

Hong Kong shares to trading on Wednesday closed lower and consolidate after last Tuesday has increased significantly. The weakening of the Hong Kong stock movement triggered by the negative sentiment of rampant profit-taking by investors.

Technically, the index in the trading session today, Thursday (23/05) 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 23 360 and 23452. If it fails in 23227, we then estimated the index tends to retest the support level of 23110 and continued up to the possibility of being in the area of ​​23 012.

Sterling Hit By Retail Sales Data

Sterling fell to a 7-week lows versus the U.S. dollar after a sharp decline in retail sales surprised on the data stoked fears that the Bank of England will ease policy further in the coming months.

Technically, the trading session today, Thursday (23/05), Sterling couple bucks a chance to move in a negative trend.

Sterling weakening primarily expected soon reexamine the minimum support at 1.4864 and 1.4748 maximum. Meanwhile, if Sterling is able to break and hold above 1.5023, then another alternative scenario that Sterling has an opportunity to test the existing Resistance 1.5141 and 1.5253 area.

Gold Up Back With The Speculation

Gold rose amid speculation that the U.S. Federal Reserve chief signaled the possibility of the need for ongoing stimulus in the country with the largest economy in the world, to counter the further outflow of investors holdings.

Technically, gold in the trading session today, Thursday (23/05) 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 ​​1394.36 and re-test the maximum level of 1417.66. However, if the gold price could not break and stays below 1364.60 then estimated the price of gold has the potential to test Support the 1338.11 and 1317.21.

Jalatama Loco London (XULF) Report 22/05/2013

XULF Report

US equities benchmarks reached new highs yesterday as two Federal Reserve officials said any adjustments to monetary stimulus, either increases or decreases, will be in the light of forthcoming data on growth and inflation. Investors liked this because it reassures the market that the Fed will only reduce stimulus if the growth is there to replace it which creates almost a win-win scenario in many investors’ minds. Gold seems to have dismissed the daily change in expectations for when the Fed’s next move will be and has let the technicals take control on price direction in the short term. This was the case yesterday as gold completed the triple top neckline at $1382 and declined as low as $1359.

The next move for gold is unclear as it is difficult to determine whether we are in a pullback of an uptrend or a retracement in a downtrend. However price is finding short term resistance at $1382 and if price can attack short term support at $1372 for a fourth time today it is likely to give way to the bears. If this happens then we have a rather shallow double top which should lead to a test of yesterday’s low of $1359. On the contrary another test of today’s resistance at $1382 could lead to gains. Any additional tests of these support and resistance levels will more likely than not lead to a breakout although any bullish break may be limited. Also keep an eye on the 20 period MA crossing below the 50 period MA which could happen soon and build the case for a short trade. Be aware that the market could be affected by any headlines coming out of the BoJ press conference today and of course we have Ben Bernanke’s testimony tonight at 10pm.

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.

Jalatama Loco London (XULF) Report 21/05/2013

XULF Report

Gold finally reclaimed some its losses yesterday as the economic calendar was void of any market moving data giving gold a breather from the bear attack. Chicago Fed President Charles Evans commented on the improving economic conditions in the US offering further clues regarding the Fed’s plans to slowdown the stimulus but this didn’t have the usual negative impact on gold.

The 1 hour chart shows a possible swing trade opportunity amid conflicting data. Although given the strong retracement pushing the RSI above 70 whilst the fundamentals are still very much bearish the short play is probably favourable today. However any short trades should exercise disciplined risk management because the 20 period and 50 period MA gives a signal to the contrary. The two hammers side by side indicates an incline of a few dollars could occur before we see a triple top and the bear trend resume. If the crossover of the moving averages are correct price could force itself through $1400 resistance but will unlikely be able to extend a rally of the magnitude we saw yesterday. If price can push below today’s low of $1382 then $1370 is the target for the next 48 hours otherwise we may see some range bound trading between $1382 and $1400.

Be mindful that yesterday’s candlestick on the daily chart was strong bullish which provides more conflicting data therefore trade carefully.

Again we have light scheduled economic data today but make sure you put Fed Chairman Ben Bernanke’s testimony in your diary at 10pm tomorrow.

Market Analysis Tuesday 21th of May

ANALYSIS 21-05-2013

Corrected Kospi index, North Korea Missile Launch Close Up

After a rally in a few days, the South Korean stock market trading Monday back arin had weakened the movement. Predictions about the 2000 level breaches will apparently still fail basis points after today’s market pressures faced by the concerns of tension on the Korean Peninsula after North Korea launched the missile nearby.

Technically, the index in the trading session today, Tuesday (21/05) 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 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 256.78 and 254.81. If it fails at 259.40, then the next index is expected to tend to retest the 261.49 resistance level and continue up the possibility of being in the 263.45 area.

The euro exchange rate against the U.S. Dollar Rebound

After a week on the trading moves down yesterday, the Euro exchange rate on Monday strengthened against the U.S. dollar. Opened at 1.2829 in early trading (00:00 GMT), the currency has been urging the U.S. dollar around + about + 36 pips or 0.28% and the value of rolling seemed to be in the range of 1.2865.

Technically, the trading session today, Tuesday (21/05), the pair euro dollar likely to move in a negative trend.

The weakening Euro is mainly expected to immediately reexamine the minimum support at 1.2714 and 1.2592 maximum. Meanwhile, if the euro is able to break and hold above 1.2867, then another alternative scenario the chance to test Euro Resistance at 1.2978 and 1.3086 area.

Gold Continuing Decline

Metal became victims of a massive sale on Monday, dragged down gold with him, as a stronger U.S. dollar and with investors becoming more cautious towards precious metal as an alternative investment.

Technically, gold in the trading session today, Tuesday (21/05) 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 ​​1421.66 and re-test the maximum level of 1448.05. However, if the gold price could not break and stays below 1388.30 then estimated the price of gold has the potential to test Support the 1356.11 and 1332.27.