Nikkei Monday Opened Red
Venturing into this week’s trading, the Nikkei stock market still can not get out of weakness last weekend, this morning (24/8) index back into negative zone due to the strengthening of the yen against the US dollar which makes shares of exporters fell.
Stocks tumbled such as Toyota Motor shares fell 4.1 percent, SoftBank and Fanuc shares fell 2 and 1.5 percent, respectively. Stocks that managed to reverse the direction of movement, namely Sony and Canon shares rose 3.5 and 2.3 percent, respectively.
The Nikkei index opened tumbled 2.2% to 19075.05 positions after last week closed at 19459.81 points position even managed to reach the highest position of the day traded at 19737.54 points and the lowest position in the position of 19540.82 points.
Demkian also with movement berjangkanya index opened down 150 points to 18 895 points from the previous closing position at position 10 945 points and managed to record the highest increase at 19 705 points and the lowest position in the position 29 425 points.
For further trading, the Nikkei futures analyst saw trying to revise the existing weakness and rising again, the Nikkei move towards resistance at 19302 MA3 line D1, but if it does not penetrate to the correction back to around 18 860.
Technically, the indexes on the trading session today, Monday (24/08) likely to weaken, test 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 tends to increase, 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 support level 18800 and 18740. If it fails at 18845, then the next index is expected to tend to retest the resistance level 18870 and continued until the possibilities are in the 18930 area.
Pounds Stable After Achieve 7 Week High vs. Dollar
Stable high level approach pounds 7-week low against the dollar on Friday as investor’s expectation on the changes in the timing of the Fed rate hike amid concern global economic growth and a weak US inflation rate. Although the Fed may not be raising interest rates in September, but investors are more optimistic that the BoE will raise interest rates in the first quarter of next year, as the UK economic outlook is more positive.
Sterling was also propped up by Chinese negative data that add to negative sentiment in the commodities sector and its implications for the inflation outlook are considered by the Fed.
Previous BoE stated that although inflation remained weak until mid-2016, but the rate of inflation is likely to recover as growth accelerated. Data released Friday showed the UK public sector finances improved, so that it becomes an additional signal that the economy is more solid. Britain’s public finance sector reported the first July surplus in the last 3 years, supported by the increase in tax revenues to its best level since 1997.
Technically, the trading session today, Monday (24/08), 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 1.5575. Meanwhile, if the pound sterling was able to break and hold above 1.5676, then the other alternative scenario that is Pound chance to test resistance in 1.5700 and 1.5750 area.
Gold Prices Rise Observed
Trading commodity futures exchange on Monday (24/8), the gold price was observed traded higher after successfully recorded an increase on the week last week due to increased speculation that the Fed will again postpone a rate hike in September.
Ongoing trade in the Asian session, gold futures for December delivery fell of 0.02% at $ 1.159.80 per troy ounce on the Comex division of the New York Mercantile Exchange. Since this morning, the price of gold has moved touched a session low $ 1.158.10 to $ 1.165.00 level daily and daily highs for the session.
Meanwhile, silver futures for September delivery was trading higher at a 0.12% level of $ 15,320 per troy ounce. On this morning, the price of silver has been moving touched a session low $ 15,275 to $ 15,380 daily and the level of daily highs for the session.
The price of gold still looks natural support for strengthening the trade started this week, having recorded a weekly gain. And to request the greenback has been observed to decline as a result of the strengthening speculation the Fed will again postpone a rate hike in September.
Decline in demand for the greenback has been fueled by a number of economic events that occurred last week. One was leaking the results of the FOMC before the specified time and some reports the condition of the American economy.
On Friday, a report by Markit Manufacturing PMI said that the US has decreased, which is a seasonally adjusted 52.9 in August from 53.8 in July. Meanwhile, the lack of reports on today’s world economy is not expected to give a big upheaval for the price movement of gold futures.
Technically, gold in today’s trading session on Monday (24/08) 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 1155.10 and re-test the maximum level of 1150.50. However, if the price of gold is able to break and hold above 1160.80, the predicted gold prices could potentially test Resistance ie, 1162.90 and 11167.50.
