Oil Rebounds Elevate Hang Seng
Hong Kong shares trade on Friday the second week of July (10/7), opened with the Hang Seng index has continued rally earlier trade by global sentiment that rebound in world oil prices of US session overnight.
Amplifier exchange this morning as shares of Ping An Insurance Group Co of China2.96%, shares of Tencent Holdings 2.74%, shares of Galaxy Entertainment Group 2.12% of shares of Lenovo Group 1.98%, shares of China Unicom Hong Kong 1:30%, shares of Hong Kong Exchanges and Clearing 0.77%, PetroChina shares 1%, shares of Industrial & Commercial Bank of China 1.99%, and Bank of China at 2:09%.
The Hang Seng Index opened higher this morning managed by 175.13 points, or 0.72%, to 24567.92 points of the position be traded before closing at 24392.79 points and reached the highest position previously traded at 24695.75 and the lowest point at 23332.90.
But slightly different from the movement of the Hang Seng Index futures this morning, which opened to the same position at the closing position previously traded at 24 452 points and reached the highest position previously traded at 24 683 points and the lowest was 23 262 points.
Based on the closing traded previously, the analyst estimated that the movement of the Hang Seng Index today will still try to penetrate the first resistance at 24 670 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 24 880 points with MA5 under 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 24 290 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 24 030 points with MA5 under BB10 daily.
Technically, the index on the trading session today, Friday (10/07) 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, signalling upside.
It is estimated, the index test the first resistance level of 24 860 and 24 806 24925. If it fails in, then the next index is expected to tend to retest the support level of 24750 and continued until the possibilities are in the 24700 area.
Yen Trying to Rebound
The strength of the US dollar exchange rate fell Thursday after recently announced the US Department of Labor reports that less encouraging and surprising the market. The report shows the number of weekly jobless claims which ended last July 4, well above market expectations for a reduction in the number of claims.
Negative sentiment towards the US dollar is getting stronger when the indicator showing the development of the above increased the number of unemployment claims first weekend in July increased by 297,000 claims, an increase of 15,000 claims from the previous week at 282,000 positions.
US dollar exchange rate since the Asian session to trade the European session showed gains even managed to reconquering the Euro exchange rate and the Japanese yen managed to rally in the previous trading day, now corrected. This correction is estimated to be more profound if not able to return highs Thursday.
Against the Japanese Yen, the USDJPY pair on Thursday looked under pressure from above sentiment after from the beginning of the Asian session the pair continued to perform strongly. USDJPY is now being rolled in the range of 121.23, after early trading opened at the level of 120.71 and touched the highest level in the range of 121.58.
And as information on gold, the dollar is getting depressed so safe-haven asset prices to resume rally, which is now being rolled in the range of $ 1,164.80 in early trading after opening at $ 1,158.40 price. For further trading until the end of trading, analysts predict the dollar will be more depressed by gold.
Technically, today’s trading session on Friday (10/07), the dollar yen pair has an opportunity to move in a positive trend.
A stronger yen is mainly expected to immediately retest the resistance at 122.50 minimum and maximum 123.10. Meanwhile, if the Yen could not break below 121.89 and then survive another alternative scenario will be the Yen likely to test support in 121.50 and 121.00 area.
Gold Up For Second Day
Gold prices rose for a second day, extending a rebound from a three-month low, on speculation that the economic risks of China and Greece will push the Federal Reserve to pause in US interest rate hikes.
All but one member of the Federal Open Market Committee “indicated that they would need to see more evidence that economic growth is strong enough” before Raise interest rates, Fed minutes indicated in a report Wednesday. Higher interest rates will limit the appeal of gold because gold does not give advantage or outcome as other assets such as bonds and equities.
Gold fell in the past four quarters; this is the longest since the fall of 1997, the prospect of higher interest rates. Fed minutes showed concern that turbulence abroad may pose a risk to US expansion. International Monetary Fund on Thursday slashed their forecasts for global growth in 2015.
One analyst of broker in Florida reveals that the chance of the Fed Raise interest rates this year is very small, and it should support gold. The world today has a lot of problems, and gold get some benefit from this condition. ”
Spot gold prices rose about 0.2% at $ 1,160.40 / onz, while the price of gold futures for August delivery ended down $ 4.30 at $ 1,159.20.
IMF reduces their forecasts citing weak performance of the US economy in the first quarter and warned that the turmoil in financial markets, from China to Greece could worsen the outlook. China’s shares have plummeted in recent weeks, and Greece struggled to reach an agreement with the European creditors to survive in the Euro zone.
Technically, gold on the trading session today, Friday (10/07) potential reversal, testing positive trend, but prone to profit taking. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Bands began to shrink, thus 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 1165.80 and re-test the maximum level of 1171.10. But if the gold price could not break and survive below 1160.40 then predicted gold prices could potentially test the Support 1152.50 and 1147.25.
