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.