Bargain Hunting Continues, Kospi Gains
South Korean stock market on Tuesday morning (12/5) successfully opened by continuing the upward trend previously traded. Bargain hunting blue-tier stocks traded previously seemed still ongoing South Korean stock market in early trading this morning.
This morning Kospi strengthened by Korea Petro Chemical shares were successfully opened sped by 6.87%, shares soar 10:33% Dongbu Hitek, Hanmi Pharm shares Soar 9.60%, shares of CJ Corp. bolted 8% and shares of Samsung affiliates that Samsung Securities is open shot 6:45%.
This morning Kospi index opened higher again managed by 3:25 or 0:15% points to become 2100.63 points from its previous close at 2097.38 points and reached the highest position before the 2110.79 and the lowest point at 2099.53 points. Likewise, the movements of Kospi index futures this morning were successfully opened higher by 0.68 points or 0:26% to be 262.17 points from the previous closing position at 261.49 points and 263.88 highs and the lowest point at 261.83 points.
Based on the previous closing, the Analyst Vibiz Research Center estimates that the Kospi index movement will try to penetrate support at 261.25 points with MA5 under BB10 daily, if the movement of the index broke through the first support is expected to try to penetrate the second support at 259.40 points with MA5 under BB10 daily.
If the movement of the index managed to turn toward stronger, it is estimated that the movement of the index will try to penetrate the first resistance at 263.60 points with under BB10 daily MA5, a break in the first resistance then expected to try penetrating next resistance at 265.40 points by the middle MA5 BB10 daily.
Technically, the index on the trading session today, Tuesday (12/05) likely to strengthen, test positive trend. At the M15 chart bullish hammer formation to provide opportunities for the index to move upside. However, the volume tends to increase, as well as an early indication of bullish index. In addition, RSI, on the M15 charts, is oversold, signaling upside.
It is estimated, the index test the first resistance level of 262.50 and 263.25. If it fails at 261.90, then the next index is expected to tend to retest the support level 261.25 and continued until the possibilities are in the 260.70 area.
Yen Tends Depressed
Yen tried to walk the US dollar, but when the inflation data was released, it looks like the yen will tend to depreciate.
USDJPY rose of 0.05% to a level of 120.14. Market talks about the latest comments from officials in the US and Japan on economic and monetary policy, in which Japan has released the loan per year on Monday night. Of the impact of the consumption tax hike in April, CPI inflation is only 0.2% in March. However BOJ Governor Haruhiko Kuroda showed optimistic about the outcome.
Given expectations that the BoJ will announce measures further policy stimulus in this year, and the possibility of the Fed to raise interest rates later this year, we saw a trend in the yen is still depressed.
Technically, the trading session today, Tuesday (12/05), the dollar yen pair has an opportunity to move in a negative trend.
Weakening Yen mainly expected soon reexamine the minimum support at 119.70 and 119.25 maximum. Meanwhile, if the Yen were able to break and hold above 120.15, then another alternative scenario the Yen likely to test resistance in 120.00 and 120.50 area.
Gold Weakens Reviewing Developments Greece
Gold fell for the third time in four sessions as the signal easing of tensions between Greece and its creditors reduce the demand for gold is considered a safe haven. Strengthening of the US dollar against most currencies also weighed on gold trading, which is denominated in US Dollar, as it becomes more expensive for investors holding other currencies.
Euro-area finance ministers welcomed the progress made in meetings related to the fund Greece but still asked for more effort before funds can be disbursed. Finance ministers meeting in Brussels will release a statement to support Greek efforts to restore the plan. At the beginning of the European session, speculation had difficulty in reaching an agreement to encourage the strengthening of the gold price.
Meanwhile, members of the FOMC, John Williams, who was interviewed on CNBC on Monday said the Fed should not rush inform a rate hike. This statement is considered to add to the volatility of gold trading for the next few months. Rising interest rates could weigh on gold trading only returns through the difference in price.
Technically, gold in today’s trading session Tuesday (12/05) 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 Band begins to widen, thus giving impetus for gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1180.10 and re-test the maximum level of 1175.25. However, if the price of gold is able to break and hold above 1183.90, the estimated price of gold could potentially test the Resistance 1184.50 and 1188.10.
