Nikkei Translucent 21000
Japan Tokyo Stock Exchange trading on Tuesday morning (11/8), the Nikkei index opened with a continued rally earlier trading and now almost penetrated 21000 points by the weakening yen sentiment.
This morning the Japanese stock market seemed amplified by Mitsubishi Chemical Holdings by 1.61%, Nippon Light Metal Holdings 1:50%, Sumitomo Metal Mining 3.96%, shares of Hitachi Construction Machinery 2:05%, 1.80% stake Daikin Industries, Mitsubishi Electric 1:12%, Honda Motor 1.71%.
The Nikkei get strengthened by 112.09 points or 0:55%, with an advanced 20920.78 points from the previous closing position traded at 20808.69 points position and managed to reach the highest position previously traded at 20805.73 points and the lowest position before at 20617.05 points
But slightly different from the movement of Nikkei index futures this morning, which seemed to be opened under the same conditions on the closing position at the end of the previous trading at position 20 890 points and reached the highest position previously traded at 20,900 points and the lowest position at 20,600 points.
Based on the closing traded previously, the analyst estimated that the movement of the Nikkei index today will try to penetrate the first resistance at 20 890 points with MA5 position on BB10 daily, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 21 040 points with MA5 on BB10 daily.
If the movement of the index managed to turn around the direction of weakening, it is expected to try to penetrate the first support at 20,700 points with MA5 on BB10 daily, if the movement of the index broke through the first support is expected to try to penetrate the second support at 20,600 points by the middle MA5 BB10 daily.
Technically, the index on the trading session today, Tuesday (11/08) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume of which is likely to increase, early indications bullish index. In addition, RSI, on the M15 charts, is oversold, signaling upside.
It is estimated, the index test the first support level that is 20 750 and 20 795 20680. If it fails in, then the next index is expected to tend to retest the resistance level 20830 and continued until the possibilities are in the 20880 area.
Greek Bailout Optimism Restore Outlook Against Euro
The euro extended gains on Tuesday on optimism Greece will get a multi-billion-euro bailout agreement with its creditors, while the commodity currencies such as the Australian and Canadian dollar a bit of bounce for the recovery of oil and copper prices.
Currency Euro zone region today had to touch its highest level of 10 days at $ 1.1041 and was on track for a fourth straight day of gains. The single currency is now getting positive sentiment on expectations that Athens and international creditors can reach an agreement on Tuesday bailout and keep the country from fallout in the financial sector.
Chief analyst at Barclays in Tokyo said that the prospects for the Greek bailout agreement has been supporting the euro currency. But developments after Greece and its creditors were reached in an agreement widely in the last month, and the factors of the dollar is likely to determine the direction of this currency in the long term.
The dollar has slightly lost its light after the non-farm payroll report on Friday, which is optimistic but not strong enough to convince the market that the Federal Reserve may Raise interest rates, the analysts added.
Technically, the trading session today, Tuesday (11/08), the pair Euro-dollar likely to move in a negative trend.
The weakening of the Euro mainly expected soon retest the support at 1.0925 minimum and maximum 1.0850. Meanwhile, if the Euro is able to break and hold above 1.0973, then the other alternative scenario that Euro likely to test resistance in 1.1000 and 1.1050 area.
Gold Achieves $ 1.100
Gold scored gains on Monday, briefly topped up area of 1.100 US dollars per ounce on Monday, as comments from Federal Reserve Vice Governor Stanley Fischer indicates that the US central bank may not raise interest rates in September as market assumptions. Gold trader has been anticipating a rate hike in September, and the statements of Fischer on Monday to break those expectations. Gold, which does not give the investor interest, may lose its appeal over the air assets of other high-yield.
Comments from the Fischer pressing to weaken the dollar index at midday. The weakening dollar boosted gold were assessed with the dollar. The dollar weakened due to the prospect of delay time Federal Reserve interest rate hike for the first time in almost one decade.
According to one of the market participants, a number of traders who have taken a bearish position gold towards forced to close their positions as gold prices rebounded. He added that there was no fundamental change in the gold market, but there was profit taking on short positions in gold.
Technically, gold on the trading session today, Tuesday (11/08) 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 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 1105.25 and re-test the maximum level of 1110.50. But if the gold price could not break and survive below 1100.50 then predicted gold prices could potentially test the Support 1008.50 and 1002.10.
