Hang Seng Futures Still Positive
Hong Kong shares trade on Friday morning (5/6), opened with the Hang Seng index is still continuing weakening traded before and reached its lowest in seven weeks by the fall in crude oil prices.
The fall of crude oil prices at the end of the US trading session overnight seemed to subvert energy stocks such as China Shenhua Energy shares slumped 0.83%, shares of China Petroleum & Chemical shrink 1:05%, PetroChina shares shrank 0.66%. Besides weakened by CCheung Kong Property Holdings shares fell 4%, CK Hutchison Holdings shares plunged 1:14%, HSBC Holdings slumped 0.61%.
Meanwhile, shares of Cathay Pacific Airways amplifier is bolted 2:49%, China Resources Enterprise shares rose 0.87%, shares of Galaxy Entertainment Group shot 1:25%, Sands China shares soared 2:35%, Sino Land Co. shares climbed 1:36%, and CNOOC surged 1:01%.
The movement of the Hang Seng Index opened lower this morning seem limited by 69.41 points, or 0:25% that became 27588.06 points from the previous closing position at 27657.47 points and reached the highest position previously traded at 27846.65 points and the previous low at 27169.58 points.
But slightly different from the movement of the Hang Seng Index futures traded on this morning seem limited success opened higher by 31 points or 0:11% being 27 583 points from the previous closing position at 27 552 points and reached the highest position previously traded at 27 855 points and the previous low at 27 095 points.
Based on the results of the close of trading the previous Hong Kong shares, the analyst estimated that the movement of the Hang Seng Index today seem to be trying to penetrate the first support at 27 380 points by the middle MA5 BB10 daily, if the movement of the index managed to make up for the first support is expected to try to penetrate the next support at 27,200 points by MA5 under BB10 daily.
If the movement of the index managed to turn toward stronger, it is expected to try to penetrate the first resistance at 27,800 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 27 950 points with MA5 on BB10 daily.
Technically, the index on the trading session today, Friday (05/06) 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 27260 and 27325. If it fails at 27 208, then the next index is expected to tend to retest the support level that is 27 170 and continued until the possibilities are in the area of 27 125.
Euro Break Above 1.1300
Euro currency rallied against various major currencies on Thursday as the strengthening of the German bond yields reached the highest level in eight months, extending gains after the ECB seeks her verbally intervene on bond markets to the impact of volatility in the market.
The euro managed to record its biggest two-day gains in the last 6 years, as the shock of high inflation in the Euro zone as well as the comments that ECB President Mario Draghi signaled that the central bank has no plan to add stimulus if only an increase in yield.
German bond yields on the benchmark 10-year which is Europe’s benchmark borrowing costs, rose 0.99% on Thursday, two days of record gains its best since 1998. The spread between the yield on German bonds with US Treasury yields thinned to the smallest level in 4 months.
Technically, the trading session today, Friday (05/06), the pair Euro-dollar likely to move in a negative trend.
The weakening of the Euro mainly expected soon retest the support at 1.1150 minimum and maximum 1.1100. Meanwhile, if the Euro is able to break and hold above 1.1211, then the other alternative scenario that Euro likely to test resistance in 1.1230 and 1.1280 area.
Gold Markets Wait for NFP
Metal commodity exchanges trade futures on Friday (5/6), the price of gold and silver looks trying to bounce back after a sharp decline in the previous session, when the improvement in the US labor market conditions.
Ongoing trade in the Asian session, gold futures for August delivery has traded 0:20% higher at $ 1.177.60 per troy ounce on the Comex division of the New York Mercantile Exchange. Since this morning, gold futures price movements are seen moving touched a session low $ 1.175.50 to $ 1.177.90 level daily and daily highs for the session.
Meanwhile, silver futures for July delivery was trading higher by noting 0:22% increase in the level of $ 16,138 per troy ounce. The price of silver futures this morning has moved touched a session low $ 16,060 to $ 16,142 daily and the level of daily highs for the session.
Price metals futures this morning trying to re-arrange seen an increase, after declining sharply in the previous session due to improving conditions in the US labor market. The recovery in the US labor market have pushed the US dollar broadly strengthened and it dropped the price of gold since both tend to move in opposite.
Based on the official report of the US Department of Labor has stated that the number of jobless claims in the Americas region decreased, which becomes a seasonally adjusted 276K last week from 284K in the previous week.
While it is still in the US, the market attention today amid focus on US NFP report scheduled to be released at 19:30 Jakarta time. In line with the report, if the growth in US jobs faster then the gold price potentially weakened back. Conversely, if the US jobs growth slowed, the price of gold likely to move higher.
Technically, gold on the trading session today, Friday (05/06) potential reversal, testing positive trend, but prone to profit taking. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Bands began to shrink, thus giving impetus for gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1183.25 and re-test the maximum level of 1188.50. But if the gold price could not break and survive below 1177.80 then predicted gold prices could potentially test the Support 1175.10 and 1170.25.
