Nikkei Moving Limited
The Nikkei index of the Japanese stock market trading on Tuesday morning (18/8) opened with the continuing trend of the previous trading gains, which boosted gains in exporters after the yen weakened.
Amplifier stock markets this morning are Hitachi Zosen shares of 0.95%, 0.99% stake Mitsui Engeneering, Casio Computer 2:05% shares, 0.83% stake Nikon, Canon shares 0.88%, shares of Kawasaki Kisen Kaisha 1:38%, shares of Tokyo Electric Power 0:56%, and stock Chubu Electric Power 1:42%.
This morning the Nikkei index opened higher spot at 20:33 or 00:10% points, to 20640.59 points of the position be traded before closing at 20620.26 points position and managed to obtain the highest gains previously traded on posisi20,668.87 and briefly fell to lows at 20,541.00 points.
Likewise, the index movement this morning which rose by 20 points or 0:10%, to be 20 645 points from the previous closing position traded at position 20 625 points and reached the highest position previously traded at position 20 680 points and could plunge lowest at position 20 530 points.
Based on the closing traded previously, the analyst estimated that the movement of the Nikkei index today will tend to continue the gains by trying to penetrate resistance at the first position with 20 710 points MA5 under BB10 daily, if the movement of the index broke through the first resistance is expected to try to penetrate the second resistance position 20 815 points by the middle MA5 BB10 daily.
If the movement of the index managed to reverse direction to weaken, it is expected to try to penetrate the first support at position 20 560 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 position 20 435 points with MA5 under BB10 daily.
Technically, the index on the trading session today, Tuesday (18/08) likely to weaken, tests negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume of which is likely to increase, early indications bullish index. In addition, RSI, on the M15 charts, is oversold, signaling upside.
It is estimated, the index test the first support level that is 20 575 and 20 635 20500. If it fails in, then the next index is expected to tend to retest the resistance level that is 20 650 and continued until the possibilities are in the area of 20 710.
Economic Outlook Decline, Euro Stuck in the Red Zone
The euro failed to continue strengthening last week, despite the Greek bailout program agreement has been reached. The fall in euro zone economic outlook has not been a factor inability currency’s 19 states to continue strengthening.
Citing a report by Bloomberg, based on a survey 28% of respondents said the euro zone economy will improve in the short term. The percentage is down from 50% in July, and 83% in March when the European Central Bank (ECB) began a program of quantitative easing, and will last until the month of September 2016.
The survey was conducted before the release of euro zone economic growth data on Friday. Post-release of the growth data, the survey results can be said to be confirmed, both economic euro zone in the second quarter grew only 0.3% lower than the first quarter by 0.4%. ECB officials said economic growth will be disappointed, and promised to disburse greater monetary stimulus if needed.
Technically, the trading session today, Tuesday (18/08), the pair Euro-dollar likely to move in a negative trend.
The weakening of the Euro mainly expected soon retest the support at 1.1025 minimum and maximum 1.0950. Meanwhile, if the Euro is able to break and hold above 1.1074, then the other alternative scenario that Euro likely to test resistance in 1.1100 and 1.1160 area.
Gold Prices Rise, Market Concerns Due Would Yuan
The gold price in early trading this week edged up after the market more attentive to the concerns due to the impact of the weakening of the Yuan, after the devaluation of the Chinese government last week. This uncertainty makes the allure of gold as a safe haven surfaced again.
Weakening Yuan made the most people believe that the US Federal Reserve may delay raising rates for this September, although many people are convinced that the months ahead will be no increase in interest rates by the US central bank, while waiting for US economic data better and stronger ,
Typically the policy of Beijing will be assessed full market sheath purpose and hidden data. So is the policy of devaluation of the yuan, would be considered something fundamental in the economy of central China applies, at least questioned the economic health of the domestic market Bamboo Curtain. With alarming economic health, will make gold as an investment option soared back seat. Now the price of gold in trading commodity futures trading around $ 1117.30 per troy ounce.
Yuan devaluation last week made the gold price rose from position at $ 1,077 per troy ounce. It is estimated that gold prices further chance towards $ 1,150 per troy ounce, especially if the Fed does not raise interest rates at their meeting in September.
On the one hand, the measures Beijing this certainly can not be ignored for the policy makers of the Federal Reserve. It could be Federal Reserve Governor Janet Yellen was uncomfortable with what was done by the Chinese potential for the emergence of deflation, which of course it is hated by the Fed. Yuan devaluation makes the probability of the Fed to raise interest rates in September decreased, from 60:40, to 50:50.
The results of the Fed meeting on July 28 to 29 yesterday to be presented on Wednesday, will provide an overview of how the policy plan to raise interest rates for the first time since 2006. The gain back retail sales figures, solid employment growth and the construction sector improved so as to make the potential gross income (GDP) next month looks better anyway, even above the rising trend in US GDP. Strong data will make the US dollar may strengthen further, it will make the price of gold could fall back.
Technically, gold in today’s trading session Tuesday (18/08) 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 1112.50 and re-test the maximum level of 1107.25. However, if the price of gold is able to break and hold above 1117.30, the estimated price of gold could potentially test the Resistance 1120.25 and 1125.10.
