Master the Market Fears, Nikkei eroded by Action Take Profit
Japanese shares opened trading debut this week with a significant decrease (10/11). Asian stock markets began today with the opening mixed. Negative impulse came from the US stock market last weekend ended almost flat.
US stocks ended mixed with the limited movement of the Dow Jones index edged up just 0.1 percent. S & P closed nearly flat. NFP data in October rose a smaller than expected. Meanwhile, the unemployment rate fell to the lowest level in six years. Today the market focused on the Chinese inflation data.
Japanese shares hit back in the middle of the plan to increase the sales tax in Japan. In April the Japanese government under Prime Minister Shinzo Abe has raised the sales tax to 8 percent from the previous level of 5 percent.
In today’s trading Takata stocks remained in focus. Company airbags for vehicle manufacturers have denied allegations that they hid the results of studies showing that the production is defective airbags. Today’s share price remained unchanged Takatas looks from the close of trading Friday at position 1416 yen.
This morning the Nikkei spot index appears significantly weakened. spot index hit back by 99.20 points, or 0:59 per cent and was at 16701.18. The Topix index declined by 0:44 percent.
The Nikkei 225 futures this morning seems to have an opening at the position 16765. Nikkei index opened up 35 points compared to the previous closing. The movement of the Nikkei index futures are in a consolidation pattern, limited weakened after the day last week soared to its highest level since 2007.
Analyst estimates that the movement in the stock index futures stock in today’s trading will be subject to a technical retreat. Technically, the index has been in overbought condition has repeatedly failed to break the resistance level of 17000 points. If the resistance level is successfully penetrated the index could reach the second resistance level at 17200 points.
Meanwhile, if the decline continued Nikkei will see the support level at 16600 points. For the last trade last week and the lowest level was the highest achieved Nikkei is 16680-16970 points.
Technically, the index in the trading session today, Monday (10/11) 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.
It is estimated, the index test the level of support in advance ie 16 730 and 16 785 16680. If you fail, then the next index is expected to tend to retest the resistance level of 16830 and continued to be in the area of 16 880 possibilities.
Sterling Ignores UK Trade Deficit
Sterling moved up from 14-month lows on Friday after US payrolls data weaker than expected demand for the greenback erodes.
Previous Sterling was pressured by the data of UK goods trade deficit, which widened beyond expectations in September as a result of weakening export growth to the EU. Trade data is also increasingly strengthened indication that the UK economy is heading for a slowdown at the end of the year.
Technically, today’s trading session on Monday (10/11), pound sterling-dollar pair has an opportunity to move in a positive trend.
The strengthening of the pound sterling primarily expected soon reexamine the minimum resistance at 1.5930 and 1.5980 maximum. Meanwhile, if the pound sterling was unable to break and stays below 1.5882 then another alternative scenario that is likely to test support the pound sterling in the area 1.5850 and 1.5800.
Gold Daily Record Largest Increase Since June
Gold recorded its biggest daily rise since June, with rose more than 2% on Friday, as the depreciation of the US dollar and short covering action to boost the bullion from the lows 4-1 / 2 years.
But market watchers warn that gold still may continue to decline after the break below $ 1,180 / oz, which is the lowest level in 28% of the fall in gold prices in the past year. Gold is kept depressed during the past week due to the strengthening dollar, which benefited from expectations that the Fed will be the first major central bank to tighten monetary policy time.
Technically, gold trading session today, Monday (10/11) reversal potential, test positive trend, but prone to taking profit. The RSI indicator is likely to re-test resistance bullish channel and into the area, but the Bollinger Bands which began to shrink, thus giving impetus to gold to the downside.
It is estimated that the price of gold immediately prior to test resistance at least in the area of 1175.10 and re-test the maximum level of 1180.90. However, if the price of gold could not break and stays below 1171.30 then estimated the price of gold has the potential to test the 1168.00 and 1163.50 Support.
