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.

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.

Market Analysis Wednesday 8th of May

ANALYSIS 08-05-2013

Nikkei Index Highest Since June 2008

Japanese shares for trading on Tuesday closed up. Once the shares are compact based exporters increased post-discharge prediction that first-quarter earnings from Sony Corp. and Toyota Motor will be encouraging. Certainty regarding the report to be released today.

Technically, the index in the trading session today, Wednesday (08/05) 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 14321 and 14114. If it fails in 14240, we then estimated the index tends to retest the support level of 14172 and continued up to the possibility of being in the 14114 area.

Still the market consolidation, Dollar Gains, Aussie Down

Not too wide trading range after the market opened fully. Market conditions still showed consolidation. Australian dollar down on U.S. dollar, still the belle of the trading in the U.S. session after Australia’s central bank cut its key interest rate.

Technically, the trading session today, Wednesday (08/05), the Aussie dollar pair has a chance to move in a negative trend.

Weakening Aussie primarily expected soon reexamine the minimum support at 1.0038 and 0.9942 maximum. Meanwhile, if the Aussie able to break and hold above 1.0174, then another alternative scenario the chance to test Resistance Aussie’s in the area of ​​1.0288 and 1.0388.

Expanding Gold Down, Cannot Help from Aussie Interest Rate Decrease

Decline for gold is building momentum on Tuesday, with the precious metal more than eliminating a moderate price increase recorded in the previous session and did not get any change out of the news another round of easing, this time from Australia.

Technically, gold at today’s trading session on Wednesday (08/05) 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 ​​1414.38 and re-test the maximum level of 1396.19. However, if the price of gold is able to break and hold above 1449.30 then estimated the price of gold could potentially test the Resistance 1476.87 and 1501.40.

Jalatama Loco London (XULF) Report 7/05/2013

XULF Report

Gold is holding its ground despite broad scale equity rallies that have pushed the Japanese Nikkei to a 5 year high as the Reserve Bank of Australia’s rate cut adds to the recent central bank and jobs news that is having lingering effects on the markets. There is a feeling that gold’s retracement has run out of steam and an impending reversal is on the cards.

The daily chart shows a couple of recent small bodied and long shadowed candlesticks which illustrates the indecision in the market at present and that some news from a fundamental angle is required to push gold higher than the high of $1487.90 made on the 3^rd May. An absence of economic forces in favour of gold will likely cause a drift downwards.

The market is rather docile at the moment making it difficult to use indicators to predict the next move but nonetheless candlestick data and the loss of momentum signals this bounce has topped and a decline of some degree is due soon to break below the standout low of $1440.30 made on the 1^st May. Place a stop loss just above yesterday’s high around $1479 and target a $40 profit by the end of the week giving you an approximate risk to reward ratio of 1 to 2.

Be aware of Chinese inflation and trade balance data due out Wednesday and Thursday which are the potentially biggest numbers this week.

Market Analysis Tuesday 7th of May

ANALYSIS 07-05-2013

End KOSPI Trading Down 0.2%

In trading on the stock exchange market of South Korea, with profit taking dragged the automotive and technology sectors ended lower, resulting in a key index ended down on Monday.

Technically, the index on the trading session today, Tuesday (07/05) chance to weaken, test negative trends, browse Wall Street. On the bearish engulfing formation M15 chart provides an opportunity for the index to move downside. However, the volume tends to rise, early indications bullish index. In addition, RSI, on the M15 chart, selling in saturated areas, signal upside.

Partly, the index test in advance Support level ie 253.80 and 252.66. If they fail at 255.55, then the estimated index tend to test further back ie 256.75 resistance level and the possibility to be extended to the 257.81 area.

Dollar – Yen Finally thru 100 in the Month of May?

April is not the month for the U.S. dollar to be able to penetrate above 100 yen. Tradingkan U.S. dollar around 99 yen on Monday, float in the key obstacles that seek penetrated 100 last month but failed.

Technically, today’s trading session on Tuesday (07/05), the dollar yen pair had the opportunity to move in a positive trend.

Strengthening of yen mainly predicted back soon test resistance at 100.16 ie the minimum and maximum of 100.94. And as, if not capable of yen below 99.27 last break and then another alternative scenario ie Yen chance to test Support at 98.56 and 97.85 area.

Stimulus the Fed and ECB Still Support Gold Price Rises

The price of gold moved up on a Monday yesterday, as hopes for the Fed and the European Central Bank will continue its monetary policy further to support the current sentiment.

Technically, gold trading session today, Tuesday (07/05) reversal potential, tested positive trend, but prone to profit taking. RSI indicators tend to re-test resistance bullish channel and head area, but Bollinger band began to shrink, giving impetus to gold to the downside.

Chance of gold price immediately prior to test resistance at least in the area and re-test 1537.15 maximum level of 1537.15. But if the price of gold can not afford to break and survive under 1467.75 then predicted the gold price potentially testing Support ie 1439.95 and 1413.97.

Market Analysis Monday 6th of May

ANALYSIS 06-05-2013

Thin strengthened the Hang Seng Index, Scan revelation ECB Interest Rate

Hong Kong stock exchange for trading days last week recorded a rise. Rising exchange movements due to the availability of a conducive situation in post-market European central bank (ECB) lowered interest rates by 25 basis points molds to 0.5%. In addition, the rise in the U.S. stock exchange yesterday also gave a positive impetus.

Technically, the index on the trading session today, Monday (06/05) chance to weaken, test negative trends, browse Wall Street. On the bearish engulfing formation M15 chart provides an opportunity for the index to move downside. However, the volume tends to rise, early indications bullish index. In addition, RSI, on the M15 chart, selling in saturated areas, signal upside.

Partly, the index test in advance Support level ie 22 370 and 22 256. If they fail at 22 551, then the index is estimated to tend to test further back resistance level that is 22 677 and the possibility of being extended to 22 798 in the area.

Services Sector Performance Boost Pressure Against Swiss Franc U.S. Dollar

After the trade last thursday move strengthened against rivalnya, Swiss franc, on the day last week saw the U.S. dollar weakened on USDCHF pair. In the spot market, this pair opened at 0.9349 in early trading (00:00 GMT), and the U.S. Dollar has weakened around -12 pips or about -0.12% and the scroll appears to be in the range of 0.9337.

Technically, today’s trading session on Monday (06/05), dollar CHF pair had the opportunity to move in a positive trend.

Strengthening of CHF especially expected back soon test resistance at 0.9417 ie the minimum and maximum of 0.9459. And as, if not capable of CHF below 0.9345 last break and then another alternative scenario ie CHF chance to test Support at 0.9298 and 0.9256 area.

Gold Price Slightly Terkoreksi Action Due Sell Gold in ETP

Gold prices today trade last week recorded a decline. Attenuation due to the movement of the gold price by the availability of a report last month that the investor in the ETP Holdings has sold ownership of 17.9 billion dollars worth of gold. The sell-off could make the gold price experienced a sharp decline.

Technically, gold at today’s trading session, Monday (06/05) reversal potential, tested positive trend, but prone to profit taking. RSI indicators tend to re-test resistance bullish channel and head area, but Bollinger band began to shrink, giving impetus to gold to the downside.

Chance of gold price immediately prior to test resistance at least in the area and re-test 1513.47 maximum level of 1539.66. But if the price of gold cannot afford to break and survive under 1474.30 then predicted the gold price potentially testing Support ie 1446.65 and 1418.65.

Jalatama Loco London (XULF) Report 6/05/2013

XULF Report

Friday’s US Non-Farms revitalised risk appetite for equities and consequentially forced gold some $20 lower to hit a low of $1455.87 before bouncing back somewhat. Risk assets seem to be in a win-win situation at present as strong jobs reports deliver optimism, whilst at the other end of the spectrum, evidence of poor economic activity raises expectations of continued stimulus. Gold’s outlook is hugely influenced by the level of monetary stimulus in major economies and Fed Chairman Ben Bernanke comments last week suggested there will need to be sustained improvements in the job market before he considers removing support which is a plus for the precious metal. There are many fundamentals that can impact gold this week emanating from China, Europe, US and Australia with the G7 meeting beginning on Friday therefore be aware of the economic calendar before entering positions.

The market has lost direction since 26^th April which is clearly shown by the 4 hour chart. This sideward motion may carry on this week as we continue to receive conflicting information on the strength of major economies and investor’s expectations for more or less stimulus differ. Therefore look to trade at key highs and lows during this sideway period. On the whole if the fundamentals remain the same look to pivot trade around resistance $1488 and/or support at $1447 and $1440 when backed up with corresponding candlestick information. All these levels are highlighted by the red lines. Please note that any breakthrough of these levels could lead to further moves in that direction so candlestick data and patience is very important.