Hongkong Exchange Thursday Morning Mixed, Distressed World Oil
Hang Seng Index Hong Kong stocks in early trading Thursday morning (6/8) opened in mixed conditions, with the Spot index rose limited but negative impact. The movement of Hong Kong shares are still affected by the drop in world oil reaching the lowest price since January 2009.
Hongkog stock market this morning was reinforced by Hengan International Group shares at 1:48%, Belle International Holdings shares 2.88%, shares of China Life Insurance 0.70%, Sino Land stock 1:51%, and shares of Lenovo Group amounted to 0.71%.
The movement of the Hang Seng Index this morning, seemed amplified by 13:58 points or 0.06% to 24527.74 points of the position into its previous close at 24514.16 points and reached the highest position previously traded at 24 582.19 points and the lowest level in 24 420 , 95 points.
In contrast to the movement of the Hang Seng index futures this morning, which opened lower by 22 points or 0:09%, to be 24 538 points from the previous closing position traded at 24 560 points and reached the highest level previously traded at 24 572 points and the lowest position before at 24 294 points.
Based on the closing traded previously, the analyst estimated that the movement of the Hang Seng Index today will tend to move lower to penetrate the first support at 24 380 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 24 242 MA5 points by the middle of BB10 daily.
If the index movement succeeded in strengthening on the traded before, it is expected to try to penetrate the first resistance at 24 560 points with MA5 on BB10 daily, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 24 720 points with MA5 on BB10 daily
Technically, the index on the trading session today, Thursday (06/08) 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, signalling upside.
It is estimated, the index test the first resistance level of 24 375 and 24 327 24450. If it fails in, then the next index is expected to tend to retest the support level of 24300 and continued until the possibilities are in the 24240 area.
Dollar Gains on Yen After ISM Report
The dollar closed just below two-month highs against the yen on Wednesday, after the size of the growth of the service sector from the Institute for Supply Management rose to its highest level in 10 years.
The dollar USDJPY managed to reach a position above 125 yen for the first time since the beginning of June and finish at the level of 124.83 yen. The currency traded at 124.30 yen late Tuesday in New York. Meanwhile, the euro EURUSD closed 0.1% higher at $ 1.0905 from late Tuesday in New York.
ICE US Dollar Index, a gauge of the strength of the dollar against six other major currencies closed at 97.9120.
The strengthening of trade that followed after “choppy” where the dollar looks erasing gains from the session Tuesday after a couple of disappointing reports, including readings were weaker than expected private sector job growth from Automatic Data Processing Inc., and comments from the governor of the Fed, Jerome Powell, which minimize the possibility that the Federal Reserve will raise interest rates in September.
Pound closed up 0.2% to $ 1.5602 from $ 1.5567 late Tuesday in New York. The loonie closed up 0.1% to 75.85 cents from 75.81 cents on Tuesday. The Canadian dollar rose after official data showed Canada’s trade deficit shrank to 480 million Canadian dollars ($ 624 million).
Traders are now waiting for the nonfarm payrolls report for July on Friday which will come at 8:30 am ET.
Technically, the trading session today, Thursday (06/08), the dollar yen pair has an opportunity to move in a negative trend.
Weakening Yen mainly expected soon re-examine the minimum support at 124.20 and 123.50 maximum. Meanwhile, if the Yen were able to break and hold above 124.72, then another alternative scenario the Yen likely to test resistance in 125.00 and 125.60 area.
Gold Stable Early Sessions, Investor Focus To US Job Data
Gold prices moved steady in early trading session on Thursday with investors’ focus is now directed to the US jobs data later this week.
On the Comex division on the New York Mercantile Exchange, the price of gold contract for delivery in December moved stabilized in early trading on Thursday in the range of $ 1,084.40, edged up around 0:04%, amid investor is assessing opportunities to rebound after prices move stabilized lately
Overnight, the price of gold is only slightly lower on Wednesday with back down to near the lower level five and a half years; due to strong non-manufacturing the data from the Institute of of Management are pushing the dollar to its highest level in three and a half months.
Technically, gold in today’s trading session on Thursday (06/08) 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 1075.25. However, if the price of gold is able to break and hold above 1084.70, the estimated price of gold could potentially test the Resistance 1087.10 and 1092.50.
