Market Analysis Thursday 9th of May

ANALYSIS 09-05-2013

Nikkei Trying Continue Rally

Nikkei opened higher in early Asian trading session as index seek to continue rallying for six consecutive sessions. Investors seem optimistic performance of Japanese companies will be better as the widespread expectation of sustainability of global economic growth momentum.

Technically, the index in the trading session today, Thursday (09/05) 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 14564 and 14 680. If it fails in 14415, we then estimated the index tends to retest the support level of 14289 and continued up to the possibility of being in the 14177 area.

Positive Moves pounds; BOE Will Not Loosen Monetary Continues

British pounds currency movements will be interesting to watch these days, especially in the European and U.S. session this afternoon (09/05). This morning the pound appears to be still moving stagnant after the trade yesterday posted the largest increase in the past two weeks against its main rival the U.S. dollar. Pounsterling still looking likely to continue its gains.

Technically, today’s trading session on Thursday (09/05), Sterling couple bucks a chance to move in a positive trend.

Strengthening of Sterling primarily expected soon reexamine the minimal resistance at 1.5697 and 1.5804 maximum. Meanwhile, if Sterling was unable to break and stays below 1.5538 then another alternative scenario that is likely to test support Sterling’s in the area of ​​1.5419 and 1.5327.

LLG prices skyrocketed and U.S. gold contract, Biggest Rise in Week 2

At the end of trading on Nymex and London commodity exchange price of gold futures and LLG seem to experience a significant increase (09/05). Precious metals prices post the biggest gain in almost two weeks later along with the increasing demand for gold bars and jewelery from India and China. These two countries are the world’s largest gold consumer.

Technically, gold in the trading session today, Thursday (09/05) 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 ​​1507.73 and re-test the maximum level of 1533.27. However, if the gold price could not break and stays below 1471.80 then estimated the price of gold has the potential to test Support the 1448.41 and 1426.17.