Nikkei Free Fall To Level 20000
The Nikkei index Fall Leave of the Japanese stock market in early trading on Friday morning (21/8) still red previous trading continued heavy pressure until it reaches its lowest in 15 weeks or even a four-month low. Strengthening of the yen overnight causes sentiment selling the shares of exporters.
This morning the Japanese stock market seemed to be weakened by all stocks traded in the Tokyo Stock Exchange, where the shares Nikkon achieve sharp decline of -5.27%, -2.61% syer Mitsubishi Chemical Holdings, JFE Holdings -1.07%, Sumitomo Heavy Industries -2.30%, stock Tokio Marine Holdings -2.44%, shares of West Japan Railway -1.47%, Nissan Chemical Industries shares -1.34%.
Bernchmark Nikkei index movement this morning, great stress was observed to be opened by 361.34 points, or 1.80%, to 19672.18 points of the position be traded before closing at 20048.75 points position, and managed to record the highest increase earlier traded at 20246.47 points and the position previous low at 20048.75 points position.
The movement of Nikkei index futures this morning, which also recorded a sharp drop of 430 points or 2:15%, to be 19 635 points from the previous closing position traded at position 20 065 points and managed to record the highest increase was traded earlier at the position
Based on the closing traded before, then Analsyt Vibiz Research Center estimates that the movement of Nikkei index today will likely to continue weakening of trade prior to penetrating the first support at position 19,600 points with MA5 under BB10 daily, if the movement of the index broke through the first support then expected trying to penetrate the second support at position 19 475 points with MA5 under BB10 daily.
If the movement of the index managed to turn around the direction of rebound, it is expected to try to penetrate the first resistance at position 19,700 points with MA5 under BB10 daily, if the movement of the index broke through the first resistance then expected to try to penetrate the resistance both at position 19 875 points with MA5 under BB10 daily.
Technically, the index on the trading session today, Friday (21/8) is 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, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the first resistance level of 19 670 and 19 620 19750. If it fails in, then the next index is expected to tend to retest the support level that is 19 570 and continued until the possibilities are in the area 19 525.
Pounds Slump As Economic Data Reduce Prospects BoE Rate Increase
Pound sterling tumbled versus the dollar and euro on Thursday after economic data showed UK retail sales grew below expectations during the month of July, so that relieve pressure on the Bank of England to raise interest rates.
While inflation rose only 0.1 percent in the month of July. Data reported retail sales volume grew only 0.1% below estimates of 0.4%, sunk by the fall of sales of petrol vehicles. But most analysts say that overall retail sales data has not changed the fundamental picture above solid economy that is expected tightening of monetary policy.
Investors expect the Federal Reserve will raise interest rates before the BoE, but minutes to the last FOMC meeting, which was released a day earlier on Thursday showed most FOMC members are still worried about the condition of weak inflation and economic slowdown.
Technically, the trading session today, Friday (8/21), pound sterling-dollar pair has an opportunity to move in a negative trend.
The weakening of the pound sterling mainly expected soon reexamine the minimum support at 1.5625 and maximum 1.5570. Meanwhile, if the pound sterling was able to break and hold above 1.5685, then the other alternative scenario that is Pound chance to test resistance in 1.5710 and 1.5760 area.
The US economy slowed, Gold Prices Rise
Gold prices rose for the first time in the last three trading sessions. Rising gold prices triggered the decline in economic data in the Region Manufacturing New York, USA. Fueling speculation the planned increase in US interest rates in September may be delayed.
On Thursday (20/08) local time, The US Central Bank publishes the New York area manufacturing activity in the region works. The Empire State index surprisingly fell. Recorded in August this figure was at its lowest since April 2009.
The emergence of slanted news or data on the US economy often associated with the delay of the Federal Reserve to raise interest rates. On the other hand, gold prices also received support for the rise of the need for safe haven investors. Market participants have to worry about China’s economic slowdown will spread to other developing countries.
The US central bank officials worry that the inflation rate is still not as expected. While international economic conditions can still pose a risk if the interest rate rises imposed today. With confidence delay plans to raise interest rates, gold prices rebounded.
Earlier, gold prices dropped in July and lowest price recorded in the last five years. The fall in gold prices pushed US economic recovery signals. The US central bank is believed to be raising rates if US economic conditions allow. Rising interest rates will make the US dollar strengthened, and gold will lose its allure as an investment security assets.
Early in the week, as many as 48% of market participants believe that at the regular meeting in the month of September, the Federal Reserve will decide to raise interest rates. Previously, the number of market participants who believe a rate hike in September by 54%.
The price of gold in futures trading for the December contract closed up 0.5% at the price of $ 1,118.40 per troy ounce on the Comex in New York. Gold prices fell 1% in the previous trading session. At the beginning of this week’s gold trading, the price of gold for the first time below the average of the price movement in 100 trading days. Precisely the lowest at 39%, according to Bloomberg.
Gold prices are expected to be back to $ 1.300 per troy ounce. Opportunities for the price of gold fell below $ 1,000 shrink, in the belief prices below support at $ 1,050 per troy ounce. Rising gold prices will put pressure on the other side of physical gold demand in China and India. Many people in the second major of the country, which suffered losses in the stock market, is still afraid to directly buy gold.
The potential for the withdrawal of plans to raise interest rates until December, making the chances of rising gold prices opened. At least in the short term, the gold price will range between $ 1,145- $ 1.150 per troy ounce.
Technically, gold on the trading session today, Friday (8/21) potential reversal, testing positive trend, but prone to profit taking. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Band begins to shrink, thereby 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 1163.25 and re-test the maximum level of 1168.50. But if the gold price could not break and stays below 1158.50 then predicted gold prices could potentially test the Support 1155.10 and 1150.50.
