Kospi Flat Despite Positive Sentiment Existence
Venturing South Korean stock market trading Tuesday morning (26/5) after the holidays, the Kospi opened at the same position on the previous closing position despite the release of positive data in the country.
Data released before the stock market opened that South Korean consumer confidence in May, which showed a slight increase to 105 basis points from the previous release at 104 basis points. Shares of the ballast trade like stocks Posco Plantec looks to be the biggest weights in early trading this morning with the stock market opened at 14.88% slump in stocks affiliates such as LG Life Sciences also opened plunge 5:06%, shares of LG Household & Health Care who slipped 3:05%, SK Chemical shares decline 3.91%.
For stocks such as Hyundai Motor amplifier looks positively opened 1.88%, shares of Hyundai affiliates, namely Hyundai Mippo Dockyard 7:12 soaring%, Hyundai Heavy Industries, which jumped 5:54%, SK Innovation is bolted 6:48% and Kia Motors shares that shot 1:35%.
The movement of Kospi index opened this morning appears in the same position the previous closing position at 2146.10 points and the highest achievement earlier traded at 2142.92 and the lowest point at 2126.88 points similar.
Slightly different from the movement of Kospi index futures opened this morning at 0:07 negative points, or 0.03%, to be 265.96 points from the previous closing position at 266.03 points and reached the highest position previously traded at 266.03 points and the previous low at 263.28 points.
Based on the results of the previous closing, the analyst estimated that today’s Kospi index movement seems to be turned weaker with penetrate support at 264.75 points by the middle MA5 BB10 daily, if the movement of the index managed menmebus tersbeut then first support is expected to try menmebus next support at 263.54 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 267.40 points with MA5 on BB10 daily, if the movement of the index broke through the first resistance is expected to try to penetrate the next resistance at 268.80 points with daily atasBB10 MA5.
Technically, the index on the trading session today, Tuesday (26/05) 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 266.80 and 267.10. If it fails at 265.25, then the next index is expected to tend to retest the support level 264.80 and continued until the possibilities are in the 263.90 area.
USDJPY Moves in The Green Zone
The movement of the currency market on Tuesday (26/5), the yen is seen weakening against the US dollar after the release of Japanese economic reports this morning.
Ongoing trade in the Asian session, the USDJPY rose 0.03%, at the level of 121.60 where the pair is seen moving hit a daily low of 121.51 for the session and 121.64 level to the highest sessions daily.
Yen still looks weakened against the US dollar after the release of Japanese economic reports this morning.
Based on the official report released by the Bank of Japan said that producer price inflation middle Services experienced an increase of 0.7% in a year in April. Meanwhile, in March, producer price inflation in the service areas of Japan have experienced an increase of 3.2% in a year.
Technically, today’s trading session on Tuesday (26/05), the dollar yen pair has an opportunity to move in a positive trend.
A stronger yen is mainly expected to immediately retest the resistance at 122.90 minimum and maximum 123.80. Meanwhile, if the Yen could not break below 121.71 and then survive another alternative scenario the Yen likely to test support in 121.00 and 120.10 area.
Yellen Comments Rebound Inhibit Gold
Gold is trading around its lowest level in more than a week on Monday after Federal Reserve Chairman Janet Yellen signaled a rate hike chances this year, and as the US dollar touched the strongest level in a month.
Investors assess the increase in US interest rates will erode demand for non-yielding assets such as bullion. While the strengthening dollar makes gold more expensive for holders of other currencies, thereby reducing the yellow metal’s appeal as a safe haven. However, trading volume remained thin as UK and US markets closed for a public holiday.
On the physical market, gold demand in Asia tracked lower as investors poured their money into the stock market higher yielding. Gold jewelry demand in India is also expected to decrease in the 2nd half of this year, as the Hindu calendar indicates the number of dates that are considered good for weddings reduced by about 40% over the previous year.
Technically, gold in today’s trading session Tuesday (26/05) 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 1200.25 and re-test the maximum level of 1195.10. However, if the price of gold is able to break and hold above 1205.30, the estimated price of gold could potentially test the Resistance 1207.40 and 1210.10.
