Hang Seng Ends Positive
The Hang Seng Index opened higher on Tuesday following gains on Wall Street.
At the close of trading on Monday, the Hang Seng index in Hong Kong Stock Exchange closed up 36.12 points, or 0.12 percent, at 21,791.68. Strengthening the Hang Seng index pushed investor caution on this short week ahead of the Christmas holiday.
At the close of trading on Monday afternoon, banking stocks in the Hong Kong stock exchange closed up 0.6%. While property stocks move mixed, with shares down 1.4 percent Shimao Property, Greentown shares rose 4.1 percent and Hysan Development down 0.9 percent.
The Hong Kong market will be open for a half day on Thursday and closed later on Friday for the Christmas holiday.
Meanwhile movement observed Hang Seng index futures rose 86 points or 0.39% at 21,870.00, up from the previous closing at 21,784.00.
Monday afternoon have been released economic indicators, namely Hong Kong November Inflation Rate 2.4% recorded results, together with previous results at 2.4%.
Current Account also released the data that record the results of Q3 Prel H $ 48.4 billion, up from the previous H $ 2 billion.
Technically, the index on the trading session today, Tuesday (22/12) 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 21780 and 21850. If it fails at 21700, then the next index is expected to tend to retest the support level of 21650 and continued up to the possibility of being in the 21600 area.
Post Spanol Election – Euro Hit Dollar
The dollar weakened against various major currencies in thin trading volume session on Monday, as the strengthening of the Euro exchange rate after the election results are convincing, thereby reducing concerns over Spain’s financial stability.
Along with its elapsed event rate hikes the Fed, the focus of market participants shifted to the fall in commodity prices and the impact on the global economy and the central bank’s policy due to the fall of oil to the lowest level in just 11 years. As a result the US dollar index fell sharply from 2-week highs.
While the euro strengthened despite the fact that no single party was in Spain who obtain a mandate for ruling on election results, giving rise to concern economic reforms Spain. On one side. There is a consensus among analysts and market participants that the US dollar will strengthen again in the first quarter, it is still potentially triggering speculation buyback after investors took profit. Data taken from the position last week, still showed a decrease in long positions on the Dollar.
Technically, today’s trading session on Tuesday (22/12), the pair Euro-dollar likely to move in a positive trend.
The strengthening Euro is mainly expected to immediately re-examine the minimal resistance at 1.0960 and maximum 1.1030. Meanwhile, if the Euro unable to break and stays below 1.0900 then the other alternative scenario that Euro likely to test support in 1.0850 area and 1.0800.
Short Action Covering Coloring In Gold
Gold prices ended the US trading session with gains fairly well.
Some buying continued after the increase in Friday and some short covering in the futures market were also seen.
The weakening of the US dollar index has also become one of the supporters of buying in the precious metals market.
Trade volume is expected to start as low as about to take place the Christmas holidays and New Year.
The movement in oil prices is still the focus of market participants. Nymex crude oil fell on Monday and down almost to the seven-year lows overnight. Brent crude oil dropped 11-year low. Precious metals and raw commodity sector, in general, are still seen buying interest, but probably will remain limited as long as crude oil is still in a bearish dominance. Goldman Sachs said Nymex crude prices could fall to $ 20 per barrel in 2016.
US economic data released on Monday quite light, including Chicago Fed national activity index, which only have a minor impact on the market price.
In overnight news, elections in Spain which did not produce a clear consensus in the government, making Spanish stocks and bonds lower and could create some uncertainty for the country in early 2016.
Technically, gold on the trading session today, Tuesday (22/12) the 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 1082.10 and re-test the maximum level of 1087.87. But if the gold price could not break and stays below 1077.50 then predicted gold prices could potentially test the Support 1075.78 and 1070.40.
