Hang Seng Depressed Early Week
Hong Kong stock market trading Monday morning (3/8), the Hang Seng index opened with a retreat from the positive performance of the previous exchange trading weekend by negative sentiment disappoint Chinese manufacturing data released this morning.
The bad sentiment managed to bury nearly 65% of shares traded this morning, where the shares of China Shenhua Energy opened slumped sharply by -1.90%, followed by Hang Lung Properties shares -1.35%, Hang Seng Bank shares -1.13%, shares of AIA Group -0.89%, stock Want Want China Holdings -1.99%, shares of China Merchants Holdings International -1.41%, China Mengniu Dairy shares -1.57%, shares of Galaxy Entertainment Group -1.40%, China Overseas Land & Investment -1.23%, Sino shares Land -1.50%, and shares of PetroChina and CNOOC shares amounting to -1.17%, and -0.94%.
This morning, the Hang Seng index opened observed great pressure by 103.14 points, or 0,42%, to 24533.14 points of the position into the end of the previous week’s closing at 24636.28 points and reached the highest position previously traded at 24661.19 points and the lowest previous 24467.83 points.
But unlike the movements of the Hang Seng index futures this morning, which successfully limited opened higher by 7 points or of 0.02%, to be 24 546 points from the closing position at the end of the previous week’s trading at position 24 539 points and reached the highest position at the end of the previous week at position 24 694 points and the previous low at 24 412 points.
Based on the closing end of the previous week, the analyst estimated that the movement of the Hang Seng Index on Monday seemed to be trying to turn around the direction weakened by penetrating the first support at 24 360 points with MA5 under BB10 daily, if the movement of the index broke through the first support is expected to try to penetrate second support at 24 210 points with MA5 under BB10 daily.
If the index movement succeeded in continuing to strengthen the end of the previous week, it is expected to try to penetrate the first resistance at 24 665 points by the middle MA5 BB10 H4, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 24 850 points by the middle MA5 BB10 H4.
Technically, the index on the trading session today, Monday (03/08) 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, signalling upside.
It is estimated, the index test the first resistance level of 24450 and 24510. If it fails at 24 393, then the next index is expected to tend to retest the support level that is 24 350 and continued until the possibilities are in the 24300 area.
Dollar Rises in July
The US dollar closed the session last Friday with the monthly rise against most of its rivals.
The dollar recorded a strong performance in July than in June when the dollar finish the month with a lower level against other major currencies. This month, the US dollar rose 1.4% against the euro.
But the dollar monitored weekly performance was not impressive. Data released this week showed that the US economy grew at a slower rate than forecast in the second quarter, and wage inflation during the same period was observed to be weaker than previously expected.
The euro jumped above $ 1.11 on Friday after the release of US employment cost index, which showed that the cost to employers is growing at a much weaker pace than expected in the second quarter.
The shared currency EURUSD traded at $ 1.0984 compared with $ 1.0938. ICE US Dollar Index completed in July with a rise of 1.8% at 97.2290.
Having recorded an increase of 0.7% in the first quarter, the index rose just 0.2% in the second quarter, which was the weakest gain since 1982.
Technically, the trading session today, the pair Euro-dollar likely to move in a negative trend, Monday (03/08),
The weakening of the Euro mainly expected soon retests the support at 1.0920 minimum and maximum 1.0870. Meanwhile, if the Euro is able to break and hold above 1.0971, then the other alternative scenario that Euro likely to test resistance in 1.1000 and 1.1050 area.
Gold Prices Go Down
Gold in early Asian trade on Monday (3/8) morning tracked down. Although thin but along with projections for the short-term rise in US interest rates continued to press.
Divis New York Mercantile Exchange, spot gold for December delivery was down 0.2 percent at $ 1,092.80 per ounce, the yellow metal continued falling lower than last week closed at $ 1,079.50. Bullion lost nearly 7 percent in July, and is the deepest monthly fall since June 2013.
Hedge funds retain a bearish stance in COMEX gold at record during the week ended July 28th, as did billionaire hedge fund manager John Paulson; one of the most influential investors in the world’s gold, the metal is currently at the appropriate price level, following the defeat of the month ago.
In Asia, demands for precious metals in recent weeks many prospective buyers predict a further decline in prices. On the other Comex metals trading, silver was down -0.37% at the level of 14 690, copper futures rose a 0.12% on 2355 levels.
Technically, gold in today’s trading session on Monday (03/08) 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 1087.10 and re-test the maximum level of 1082.10. However, if the price of gold is able to break and hold above 1092.90, the estimated price of gold could potentially test the Resistance 1095.40 and 1100.50.
