Market Analysis Firday 17th of May

ANALYSIS 17-05-2013

The Hang Seng Index Back Up, Domination Increase Banking Stocks

Hong Kong shares to trading Thursday and closed to increase exchanges to survive the drop down 23,000 basis points. Strengthening exchanges this time is rebounding after two days in a row before declining. Soaring U.S. stock market overnight gave a solid boost, especially on stocks in the banking sector.

Technically, the index in the trading session today, Friday (17/05) 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 23058 and 23119. If it fails in 22973, we then estimated the index tends to retest the support level of 22911 and continued up to the possibility of being in the 22854 area.

Against the Weak Data Rate Strengthening Dollar

For the first time in six sessions the U.S. dollar slipped versus the euro after the data again highlighted the vulnerability of the U.S. economy, which erodes expectations of the termination of the Federal Reserve’s stimulus program in the near future.

Technically, today’s trading session on Friday (17/05), the pair euro dollar likely to move in a positive trend.

A stronger Euro is mainly expected to soon re-test the resistance at 1.2990 minimum and maximum 1.3066. Meanwhile, if the Euro was unable to break and stays below 1.2883 then another alternative scenario the Euro likely to test support at the 1.2804 area and 1.2722.

Gold prices Makin dimmed, Lowest Since December 2011

Gold prices to trade currently have dipped after the emergence of reports that gold holdings in the SPDR yesterday declined by 0.4% to 1047.13 metric tons or been touched to the lowest number since March of 2009. At the same time, ETP Holdings also reported that during this year the amount of gold holdings are kept in the company has decreased by 16%.

Technically, gold at today’s trading session on Friday (17/05) 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 ​​1344.13 and re-test the maximum level of 1312.07. However, if the price of gold is able to break and hold above 1386.35 then estimated the price of gold could potentially test the Resistance 1417.27 and 1448.33.