Market Analysis Monday 13th of May

ANALYSIS 13-05-2013

Nikkei soars Closer to Achieving 5 Years Ago

Tokyo stocks closed up 2.93% the highest in more than 5 years. Nikkei 225 index rose 426.06 points to 14.607.54, the highest since 4 January 2008. The broader Topix index rose 28.77 points, or 2:43% to 1.210.60.

Technically, the index in the trading session today, Monday (13/05) 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 14942 and 15022. If it fails in 14785, we then estimated the index tends to retest the support level of 14 694 and is likely to be continued until the 14613 area.

Euro Bullish Sentiment Dragged Greenback

The euro fell to its lowest level in two weeks against the strong dollar on Friday, as bullish sentiment on the greenback is still valid after Federal Reserve chairman Ben Bernake did not say anything to change market perceptions of the U.S. currency.

Technically, the trading session today, Monday (13/05), the pair euro dollar likely to move in a negative trend.

The weakening Euro is mainly expected to immediately reexamine the minimum support at 1.2863 and 1.2788 maximum. Meanwhile, if the euro is able to break and hold above 1.2972, then another alternative scenario the chance to test Euro Resistance at 1.3066 and 1.3133 area.

Kraft Depressed Dollar, Sharp Decrease Records Weekly

Gold fell nearly 1.5% on the session last Friday as a sharp rise in the dollar against the Japanese yen triggered technical selling, sending the yellow metal to a two-week low.

Technically, gold at today’s trading session on Monday (13/05) 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 ​​1420.44 and re-test the maximum level of 1409.45. However, if the price of gold is able to break and hold above 1438.00 then estimated the price of gold could potentially test the Resistance 1452.95 and 1466.82.