South Korean Stock Strengthening
The Kospi index in early trading South Korean stock market Wednesday morning (7/10), managed to continue rallies earlier traded, where strengthening this morning is still supported by the amazing performance of Samsung Electronics.
Samsung Electronics is still the top performer this morning, which successfully opened soared by 4:15%, followed by shares of Hyundai Motor by 0.95%, shares KIA Motors 0.95%, LG Electronics of 0.56%, SK Innovation is 0.89%, and the share S -Oil amounted to 0.72%.
The movement of the spot index Kospi opened higher this morning managed by 8:17 points, or 0.83%, to 1998.82 points from the closing position at the end of the previous stock exchange trading on the position of 1990.65 points, and managed to record the biggest increase earlier traded at 1998.02 and the lowest point at 1985.17 points.
Likewise, the movement of the futures index Kospi in this morning successfully opened up significantly by 1:35 points, or 0:56% with an advanced 241.53 points from the closing position at the end of trading the stock exchange prior to the position of 240.18 points and managed to record largest traded earlier at position 240.58 points and the lowest today at position 239.10 points.
Based on the results of the closure at the end of trading the stock market before, then Analyst estimates that the movement’s Kospi index today will tend to continue strengthening traded today, by penetrating the first resistance at position 241.35 points with MA5 middle BB10 daily, if the movement managed to penetrate the first resistance then expected will try to penetrate resistance at the second position with 241.15 points MA5 middle BB10 daily.
If the movement of the index managed to turn around the direction of lower back, it is expected to try to penetrate the first support at position 238.25 points with MA5 middle BB10 daily, if the movement of the index broke through the first resistance then expected to try to penetrate the second support in position 237.15 points with MA5 under BB10 daily.
Technically, the index on the trading session today, Wednesday (07/10) 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 243.90 and 244.60. If it fails at 243.15, then the next index is expected to tend to retest the support level 242.80 and continued up to the possibility of being in the 242.25 area.
The Dollar Weakened Against Euro
The dollar weakened against the euro and yen on Tuesday ahead of the closing statement of the Bank of Japan on Wednesday morning local time.
Greenback USDJPY was at 120.21 yen late Tuesday in New York, down 0.2% from the level of 120.46 yen late Monday. EURUSD euro traded at $ 1.1276, up 0.7% from the level of $ 1.1183 late Monday.
Market strategist at Bank of America, Merrill Lynch, and elsewhere do not suspect that the BOJ will expand its asset purchase program on Wednesday. However, they will analyze the central bank’s policy statement for clues about whether they intend to move to the next monetary policy meeting.
In other currency trading, the Australian dollar AUDUSD rose to a two-week high is 71.44 cents after the Reserve Bank of Australia kept interest rates at its policy meeting Tuesday morning.
The US Dollar Index, a measure of the strength of the dollar against six other major currencies, fell 0.7% to 95.4100 in recent trading.
Technically, the trading session today, Wednesday (07/10), the pair Euro-dollar likely to move in a negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.1200 and maximum 1.1150. Meanwhile, if the Euro is able to break and hold above 1.1265, then another alternative scenario the Euro a chance to test the resistance at 1.1290 and 1.1340 area.
Investor Glancing Back Gold
Gold prices bolted to the top level in almost 2-weeks on Tuesday as the greenback was hit by disappointing US economic data, which adds to doubts about the Federal Reserve’s interest rate hikes this year.
Weak US economic data, particularly employment report last Friday, has provided some impetus to the gold price. Stronger support for bullion trading on Tuesday after a report showed the US trade deficit jumped nearly 16% in August to $ 48.3 billion due to US dollar exchange rate relatively high. This may be shifting expectations of US interest rate hikes.
However, some analysts still think if gold’s performance has not been as good as expected. Negative sentiment towards metals in general, as well as the lack of demand for gold as an inflation hedge still be one of the reasons that limit price increases.
Technically, gold in today’s trading session on Wednesday (07/10) 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 1142.13 and re-test the maximum level of 1137.25. However, if the price of gold is able to break and hold above 1147.80, the predicted gold prices could potentially test Resistance ie, 1150.40 and 1155.72.
