Market Analysis Thursday 6th of June

ANALYSIS 06-06-2013

Kospi Index Follow Asian Stocks Slump More

Decline in South Korean market movements to trading on Wednesday re-occur. Negative trend continued as the existence of a market concern on the condition of the Japanese economy and China is expected to experience an economic slowdown at the end of this year. The governments of both countries have even suggested that the country’s economic growth will still be difficult. For Japan, the condition will still looming deflation in the short term.

Technically, the index in the trading session today, Thursday (06/06) 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 254.35 and 252.75. If it fails at 256.55, then the next index is expected to tend to retest the 258.42 resistance level and continue up the possibility of being in the 260.07 area.

Today’s pulse Global Forex: Euro zone Improved

Japanese Prime Minister Abe will launch three darts critical for economic growth for the whole Abenomics.

Technically, today’s trading session on Thursday (06/06), the pair euro dollar likely to move in a positive trend.

A stronger Euro is mainly expected to soon re-test the resistance at 1.3191 minimum and maximum 1.3269. Meanwhile, if the Euro was unable to break and stays below 1.3077 then another alternative scenario the Euro likely to test support at the 1.2981 area and 1.2900.

Gold Gains As Investors Trim Cautious Ahead of ECB Meeting

Gold futures rose on Wednesday, with disappointing growth in private sector employment report large losses on equities and also provide support, but the price of gold substantially reducing their reinforcement ahead of the closing session.

Technically, gold in the trading session today, Thursday (06/06) 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 ​​1421.29 and re-test the maximum level of 1433.92. However, if the gold price could not break and stays below 1399.40 then estimated the price of gold has the potential to test Support the 1380.98 and 1365.92.