Bargain-Hunting Action Try Recover Kospi
Kospi trying to rebound as the emergence of bargain-hunting after recent sharp downfall. Investors seemed to welcome the South Korean finance minister’s comments that sinyalkan optimism on the economic outlook of the world’s 4 largest. Kospi futures traded now 240.95; try to stay away from low-level daily 239.65.
“The decline in oil prices will give a huge positive impact on the local economy. It will boost manufacturing activity, exports, and investment. The decline in oil prices due to supply is a problem. This can increase the purchasing power of the people so as to encourage the increase in consumption,” said Minister of Finance South Korea’s Choi Kyung-hwan.
Kospi was depressed at the beginning of the session after a continued decline in world oil prices and increased the risk of a Greek exit from the euro zone kept investors worried about the global economic outlook.
Technically, the index on the trading session today, Wednesday (07/01) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume tends to rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 238.50 and 236.90. If it fails at 240.85, then the next index is expected to tend to retest the resistance level of 241.90 and continued until the possibilities are in the 243.70 area.
Yen Benefited by risk aversion
The yen appreciated on Tuesday as investors switched to hunt safe haven amid continued decline in crude oil prices, the US dollar slipped after disappointing economic data. New orders for US manufactured goods fell for the fourth consecutive month in November while the index of US service sector growth in December slumping to 6-months.
The greenback was also pressured by a decline in US Treasury yields, despite expectations of recovery of the US labor market has the potential to limit the sharp decline in yields.
“Some of the recent US data showed a weak figure, and it dragged the dollar. However, the trend of the strengthening dollar is still maintained, while the euro is still very weak,” said Jens Nordvig, head of G10 forex strategy at Nomura Securities International in New York.
Technically, today’s trading session on Wednesday (07/01), the dollar yen pair likely to move in a positive trend.
A stronger yen is mainly expected to immediately re-examine the minimum resistance at 121.10 and 123.50 maximum. Meanwhile, if the Yen was able to break and stays below 119.09, the other alternative scenario that Yen likely to test support in 118.05 and 116.10 area.
Physical Level of Translucent Gold Above $ 1,200
Hedge funds and speculators continued bullish on gold amid speculation Greece’s political turmoil and China’s central bank move memangas interest rates eventually boost gold demand.
So far the spot price of gold rose 0:40% at $ 1,209.54 per troy ounce, after reaching the highest point at $ 1,211.59 intraday and daily lows at $ 1,201.95 per troy ounce.
Overall the price of gold has risen significantly compared to the price level in mid-November at the level of $ 1,140 per troy ounce. While ownership of short selling positions had declined to 6 consecutive weeks.
Gold attractiveness improved after Greece against austerity program budget could force it out of the Euro zone. Other positive catalysts Chinese interest rate cuts as well as allowances for loans of the banking sector in order to boost the growth rate, besides Japan also adds to its stimulus measures so that Gold had gained about 6.6% since hitting a 4-year lows in early November.
Net Long Positions Gold reportedly rose 5.7% to 98.391 futures and options contracts as of December 30, after two weeks earlier slumped 11%, based on the CFTC report.
Technically, gold in today’s trading session on Wednesday (07/01) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1214.10 and re-test the maximum level of 1212.05. However, if the price of gold is able to break and hold above 1216.60, the estimated price of gold could potentially test the 1217.80 and 1219.10 resistance.
