Kospi Under Concerns
The Kospi index of South Korean stock market in early trading Tuesday morning (25/8), appears to be still open under intense pressure, despite efforts to strengthen the action supported by some blue-tier stocks opened positive. The negative pressure is due to concerns about the conditions in the country over the simmering relationship between the state of North Korea and South Korea.
Bursa South Korea this morning successfully reinforced by a surge in shares of Hyundai Motor for 2:11%, shares of KIA Motors 3.97%, Daewoo Securities 2:55%, shares of Korea Petrochemical Ind 2:34%, shares of LG Chem 0.70%, and LG Electronics at 0.85%, but is charged by the Korea Petroleum Industrial shares -2.04%, -0.56% shares of Samsung Electronics, Samsung Securities shares -0.45%.
Tuesday morning Kospi index movement looks managed to record gains limited by 1.71 points or 0:10%, by becoming 1831.52 points from the previous closing position is trading at 1,829,81 points position and managed to record the highest increase earlier traded at 1872.86 points and the lowest position before on the position of 1800.75 points.
Similar to the movement of futures index Kospi in this morning that also opened higher by 1:03 points, or 0:46%, to be 222.55 points from the closing position traded earlier at position 221.52 points and been able to record highest strengthening traded earlier at position 226.58 points and the lows at 217.53 points.
Based on the closing traded before, then Analyst estimates that the movement’s Kospi index today will still try to continue pelemahannya to penetrate the first support at position 220.21 points with MA5 under BB10 daily, if the movement of the index broke through the first support it is expected to try to penetrate the second support at MA5 position with 219.15 points down BB10 daily.
If the movement of the index managed to turn toward stronger, it is expected to try to penetrate the first resistance at 222.56 points with MA5 position under BB10 daily, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 224.10 points with the position under BB10 daily MA5 ,
Technically, the index on the trading session today, Tuesday (25/08) 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 223.25 and 223.90. If it fails at 222.65, then the next index is expected to tend to retest the support level 222.10 and continued up to the possibility of being in the 221.50 area.
Currency Euro and Yen Soared
Euro currency touch its highest level 6½ months while the yen reach its strongest level in three months versus the dollar on Monday, as the action of panic selling investors on a number of risky assets and move on the currency are classified as safe haven due to the fear of a slowdown in the Chinese economy and the global, While the dollar index fell to its lowest level in two months, due to changes in rate hike expectations that the Federal Reserve may be postponed much longer. US bond yields on the benchmark 10-year slipped to 2 percent, thus reducing the attractiveness of the dollar.
China’s economic slowdown spread anxiety in global growth and the risk of deflation, thereby suppress the market sentiment after a series of Chinese economic indicators worsened, including the results of a survey of Chinese manufacturing activity last week.
The pace of China’s economic slowdown worsening has raised concerns that the government will be difficult to meet the target of 7 percent economic growth this year, especially without any specific policy. Growth in factory output, retail sales and investment in China released disappointing overall in July that also have an impact on the pace of corporate earnings and global growth.
Technically, the Euro-dollar pair will likely move into negative trend in the trading session today, Tuesday (25/08).
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.1500 and maximum 1.1440. Meanwhile, if the Euro is able to break and hold above 1.1544, then another alternative scenario the Euro a chance to test the resistance at 1.1580 and 1.1630 area.
Gold Prices Observed A Hike
Trading commodity futures exchange on Tuesday (25/8), the price of gold and silver was observed traded higher after the release of the statement “dovish” of the Atlanta Federal Reserve President this morning.
Ongoing trade in the Asian session, gold futures for December delivery traded has a 0.12% higher at $ 1.155.10 per troy ounce on the Comex division of the New York Mercantile Exchange. Since this morning, the gold price was observed to move touched a session low $ 1.150.50 to $ 1.155.90 level daily and daily highs for the session.
Meanwhile, silver futures for September delivery was trading 0.87% higher at the level of $ 14,890 per troy ounce. The movement of the price of silver has been moving touched a session low $ 14,715 to $ 14,910 daily and the level of daily highs for the session.
The price of gold and silver look to try to bounce back this morning, after the comments “dovish” of the Atlanta Federal Reserve could push the price for the closed lower. In a statement in Berkeley, Dennis Lockhart said that he predicts that the US economy will resume growth in the “moderate”, though it is known that the condition of the US dollar is still strong, commodity prices fall and the recent devaluation of the yuan is difficult to predict.
Atlanta Federal Reserve President is also still expect a rate hike in the US will happen this year, but at least the Fed will have to wait some time yet until the equity market turmoil subsided.
Technically, gold in today’s trading session Tuesday (25/08) 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 1150.10 and re-test the maximum level of 1145.25. However, if the price of gold is able to break and hold above 1155.20, the predicted gold prices could potentially test Resistance ie, 1158.25 and 1163.10.
