Japanese Stock Market Skyrocketing Sharply in Early Session Tuesday
Japanese stocks opened sharply soared in early trading Tuesday, with the Nikkei index rose by 1.4%, erasing a decline of 0.3% on Monday, as an increase in stocks across sectors.
Blue chip stocks are very attractive to investors look to get some reinforcement, with the Dow Jones News Wire reported that six foreign brokers registered to buy shares of heavyweight in pre-market trading. Solid reinforcement for the dollar to 118.61 yen from 118.17 at the close of the previous exchanges also helped boost the stock.
Among stocks that have big names, Sony Corp rose 2.2%, TDK Corp. shares soared 2.6%, Panasonicu Corp. shares traded higher 2%, and Kyocera Corp shares rose by 2.4%.
Shares in the telecommunications sector largely kept pace with the market, with stock Softbank Corp. and KDDI Corp. shares that each still rose 1.2%, but the stock NTT DoCoMo Inc., only rose 0.2% after the Nikkei newspaper reported that the wireless carrier will be posted a decrease of 19% in their profit in the nine months to December as consumers they take advantage of unlimited phone calling plans.
Technically, the index on the trading session today, Tuesday (27/01) is likely to strengthen, test positive trend. At the M15 chart bullish hammer formation provides opportunities for the index to move upside. However, the volume of which is likely to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first resistance level of 17 760 and 17 710 17825. If you fail, then the next index is expected to tend to reexamine the level of support that is 17680 and continued until the possibilities are in the area of 17 630.
Euro Rally From Low Level 2003 Because Outlook Greece
Euro maintain rally from 11-year lows amid speculation that the party’s victory in the elections Syriza in Greece that will pursue anti-austerity agenda can not force them out of the Euro zone block.
“They do not seem to have what I would see as a long-term goal, it seems they will not come out of the euro area and can not resolve default on all of their debt,” said Matt Derr, foreign currency analyst at Credit Suisse Group AG in New York. “The euro is getting a bit of positive sentiment for it.”
Euro this morning was little changed at $ 1.1245 at 08:40 pm after yesterday slipped to $ 1.1098, it is the lowest level since September 2003. The common currency rose by 0.2% to 133.32 yen from a Monday when hitting a 130.15, the weakest level since September 2013. The dollar bought at 118.55 yen after yesterday rose by 0.6% to a level of 118.46.
Technically, the trading session today, Tuesday (27/01), the pair Euro-dollar likely to move in the negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.1180 and 1.1125 maximum. Meanwhile, if the Euro is able to break and hold above 1.1239, then the other alternative scenario that Euro chance to test resistance in 1.1250 and 1.1310 area.
Gold Slumped After Ongoing Greek Elections
Gold futures fell on Monday Yesterday when traders took profits after Syriza radical left-wing party won the Greek elections last weekend, where it is added uncertainty of the market.
Gold for February delivery retreated $ 13.20, or 0.1% to settle at $ 1,279.40 per ounce, while silver futures in March fell 6 cents to $ 18.30 per ounce.
However, the sharp rise in gold prices from 9% in US dollars and 18% in the euro since the beginning of this year largely due to the expectation of substantial ECB bond purchases and a change of government in Greece. Both have now been going on and encourage more investors to follow the old adage “buy the rumor, sell the fact,” said analysts at Commerzbank in a note.
In other metals, platinum futures for April delivery lost $ 13.70 to $ 1255 per ounce, while palladium for March delivery fell $ 7.75 to $ 781.85 per ounce. High grade copper for March delivery rose 4 cents to $ 2.54 per pound.
Technically, gold in today’s trading session on Tuesday (27/01) 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 1272.33 and re-test the maximum level of 1267.73. However, if the price of gold is able to break and hold above 1277.80, the estimated price of gold could potentially test the 1280.40 and 1285.72 resistance.
