Hang Seng Enduring In Negative Territory
Overall in the Hong Kong stock exchange trading on the day on Thursday, the Hang Seng index looks still not able to be free of the negative pressure in early trading, which is due to the still suppressed domestic energy share impact from the decline of the world’s oil.
Hong Kong shares ballast is CNOOC shares amounted to -2.95%, stock Kunlun Energy -2.60%, -2.35% PetroChina shares, shares of China Petroleum & Chemical -2.43%, and shares of China Shenhua Energy -1.88%, besides co-subverted by shares China Mobile by -3.08%, shares of Lenovo Group amounted to -3.86%, and shares of HSBC Holdings -2.57%.
Spot Hang Seng Index on Thursday returned subverted by 143.85 points, or -0.63%, to be 22845.37 points from the closing position at the end of the previous stock exchange trading on the position of 22989.22 points, and be able to record the highest gains at the end of trading on Thursday at 22869.59 points and the lowest position Thursday at 22727.59 points position.
Likewise, the movement of the index futures Hang Seng Thursday also closed depressed by 76 points or 0:33%, to be 22 854 points from the closing position at the end of trading stock exchanges previously at position 22,930 points and managed to record the biggest gain at the end of trading on Thursday on position 22 879 points and the biggest drop on Thursday at position 22 719 points.
Hong Kong shares traded further, it is estimated that investors will respond to the annual domestic inflation data in September indicated that the results will show relatively similar to the results of the previous release and performance data of the Chinese housing sector.
Technically, the index on the trading session today, Friday (23/10) 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 that is 22 900 and 22960. If it fails at 22844, then the next index is expected to tend to retest the support level of 22800 and continued up to the possibility of being in the 22750 area.
Dovish Signal Drag Euro Down
The euro fell on Thursday after European Central Bank President Mario Draghi said the central bank to consider further cuts in interest rates and raising the chances for further policy easing to push inflation slow in the euro zone.
The euro tumbled to a 1-month lows against sterling, the low level in more than 2 weeks against the dollar, and level 3 week low against the yen after Draghi gave a negative assessment of the region’s economy. The ECB kept interest rates at a meeting in Malta. In a press conference, Draghi said it would re-evaluate in December what else to do the central bank to address the threat than inflation, adding that further cuts in the interest rate savings can done and ECB policy board is ready to take a step. Moreover, Draghi also mentioned that the recent strengthening of the euro as a negative risk towards economy.
ECB cut interest rates to low levels over a year ago and have repeatedly said that they had reached the bottom. According to the strategic, Draghi provide all kinds dovish signals that suppress the euro. Reuters poll showed the ECB the opportunity to extend its bond purchase program passing through September 2016 reached 70%. Clayey same poll 40% chance that the ECB will increase its monthly purchase in the next 6 months.
Technically, the trading session today, Friday (23/10), the pair Euro-dollar likely to move in a negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.1050 and maximum 1.0940. Meanwhile, if the Euro is able to break and hold above 1.1101, then another alternative scenario the Euro a chance to test the resistance at 1.1140 and 1.1190 area.
Dollar Gold Hold at Lowest Level week
Gold effort to rise from failure due to the recent decline in the dollar which rose sharply on Thursday. The dollar immediately strengthened after the European Central Bank to be dovish which hit the euro exchange rate, coupled with the data the US weekly unemployment benefit claims that slick, reviving expectations of a rate hike this year.
The US Labor Department reported an average of four-week jobless claims fell to the lowest level since December 1973, as many as 263 250 from 265 250 in the previous week. For weekly claims rose as much as 3,000 to 259,000 in the week ended October 17. The figure was lower than forecast by economists surveyed by MarketWatch of 265,000.
Gold is expected to weaken over the next year. Goldman Sachs expects gold price the range of $ 1,100 per troy ounce in the first three months, then $ 1,050 within six months, and after 102 months is around $ 1,000 per troy ounce. While in this year, Goldman expects gold will go down gradually.
Gold on Thursday closed trading at $ 1,167.06 level with daily highs $ 1171.80, $ 1162.67 and the lowest.
Technically, gold in today’s trading session on Friday (23/10) 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 1160.33 and re-test the maximum level of 1155.73. However, if the price of gold is able to break and hold above 1165.70 then estimated gold prices could potentially test Resistance ie, 1168.40 and 1173.72.
