Market Analysis Friday 10th of May

ANALYSIS 10-05-2013

Kospi index soars, BoK Interest Rate Cuts

South Korean shares for trading on Thursday closed to rise. Rising stock triggered as a result of the impact of policy rate cuts benchmark Korea’s central bank by 25 basis points to 2.5%. The policy is in accordance with previous predictions that Korea’s central bank does not want to lose momentum while central banks in many countries also undertake industry benchmark interest rate cuts.

Technically, the index in the trading session today, Friday (10/05) 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 254.23 and 253.09. If it fails at 256.20, then the next index is expected to tend to retest the 257.61 resistance level and continue up the possibility of being in the 258.83 area.

BOE Hold Interest Rates, Forex Exchange Daily Pound Up

In the forex movement Yesterday the European session on Thursday, British Pound Sterling exchange rate generally indicates the movement of the U.S. Dollar was up against after opening at 1,554 in early trading (00:00 GMT). In the GBPUSD forex trading, the currency has gained about 35 pips or about + +% 0:22 and by the time this news was observed in the rolling value 1.5575.

Technically, the trading session today, Friday (10/05), Sterling couple bucks a chance to move in a negative trend.

Sterling weakening primarily expected soon reexamine the minimum support at 1.5335 and 1.5273 maximum. Meanwhile, if Sterling is able to break and hold above 1.5443, then another alternative scenario that Sterling has an opportunity to test the existing Resistance 1.5505 and 1.5564 area.

Gold and Crude Oil Moves Flat This Week

Development of oil and gold prices for this week is still limited moves. The lack of fundamental economic data is released in industrial countries apparently gave unfavorable sentiment for gold and oil price developments. Some economic data are the focus for this week is about the impact of the decline in ECB interest rates by 25 basis points to 0.5%, which brings a positive outlook for the economy in the European region.

Technically, gold at today’s trading session on Friday (10/05) 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 ​​1427.84 and re-test the maximum level of 1409.76. However, if the price of gold is able to break and hold above 1456.55 then estimated the price of gold could potentially test the Resistance 1479.39 and 1500.15.