Kospi Wednesday Morning Flat
Venturing South Korean stock market trading Wednesday morning (5/8), the Kospi opened at the same position on the previous closing position, but tends to weaken. These developments triggered by the data released by the country’s central bank.
Bank of Korea (BOK) announced an economic indicator that shows the position until July foreign exchange reserves declined slightly to $ 370.82B from previous releases at $ 374.75B.
Ballast stocks this morning were shares of Samsung Electronics amounted to -0.4%, -0.4% and KB Financial and POSCO shares -1%, while Hyundai Motors diperkurat by 1%, KIA Motors shares 1%, shares of Korean Air and Asiana Airlines by 2.2%, and 2.8%.
This morning, spot Kospi index looks opened in the same position at the position before the closing of trading on 2027.99 points and achieved the highest position previously traded at 2027.99 and the lowest point at 2007.66 points previously.
Likewise, the movement of Kospi index futures this morning, which also opened in the same position at the closing position at the end of the previous trading at 243.56 points and the previous low at 241.42 points.
Based on the closing traded before, then Analyst estimates that today’s Kospi index movement will try to penetrate the first resistance at 244.65 points with MA5 under BB10 H4, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 245.60 points with bottom MA5 BB10 H4.
If the movement of the index managed to turn around the direction of lower back, it is predicted movement of the index will try to penetrate the first support at 242.50 points with MA5 under BB10 daily, if the movement of the index broke through the first support is expected to try to penetrate the second support at 241.60 points with MA5 under BB10 daily.
Technically, the index on the trading session today, Wednesday (05/08) 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, on the M15 charts, is oversold, signaling upside.
It is estimated, the index test the first resistance level of 243.80 and 244.50. If it fails at 242.70, then the next index is expected to tend to retest the support level 242.00 and continued until the possibilities are in the 241.10 area.
Euro vs Dollar Tend Flat After US Factory Data
The euro was flat against the Greenback traded on Tuesday after data showed US factory orders rose as expected in June, with the focus of investors ranging directed to US employment data release in July.
The US Commerce Department report showed factory orders rose 1.8% from March. While the data Non-Farm Payrolls which is scheduled for release on Friday expected to show growth of 223,000 jobs last month. Monthly job growth numbers over 200,000 assessed by economists as consistent with strong employment growth. The Federal Reserve has said that if the strengthening of the labor market is a key factor in deciding when short-term interest rate hike.
While in the Euro zone, Athens on Tuesday expressed optimism that the new bailout agreement will be reached on August 18.
Technically, the trading session today, Wednesday (05/08), the pair Euro-dollar likely to move in a negative trend.
The weakening of the Euro mainly expected soon retest the support at 1.0800 minimum and maximum 1.0740 area. Meanwhile, if the Euro is able to break and hold above 1.0860, then the other alternative scenario that Euro likely to test resistance in 1.0890 and 1.0950 area.
Fed Statement Weight Gold Prices In Early Session
Gold prices slightly lower on Wednesday morning after statements from the Federal Reserve’s board members who have voting rights this year that forecasts for a rise in interest rates this year may be getting “close”.
On the New York Mercantile Exchange, the price of gold is currently down 0.56% to $ 1.084.60 / onz.
Overnight, the president of the Federal Reserve Bank Atlanta, Dennis Lockhart said in an interview with The Wall Street Journal that the Fed is already “close” to ready Raise interest rates. Lockhart, who have voting rights this year, is considered rather moderate according to the analysts, who made the statement is much more meaningful.
Rate hike seen as bearish for gold, which is not tied to the interest rate and struggling to compete with high-yielding assets in an environment of higher interest rates.
Overnight, gold futures slightly higher amid thin weakening in the US dollar, in the middle of China’s stock market rally from a three-week lows after the regulator to introduce new stimulus measures aimed at limiting short selling action in an attempt to reduce volatility in the domestic stock market ,
Technically, gold in today’s trading session on Wednesday (05/08) 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 1080.10 and re-test the maximum level of 1074.50. However, if the price of gold is able to break and hold above 1084.90, the estimated price of gold could potentially test the Resistance 1087.10 and 1092.25.
