Hongkong Stock Close Down With Investor Awareness
At the close of trading yesterday, the Hang Seng index in Hong Kong Stock Exchange closed negative -75.99 points or -0.34% at 22188.26. The weakening of the index with investor caution due to global geopolitical concerns after the terrorist attacks in Paris.
As for stocks that become the Hong Kong exchange ballast is that Lenovo shares fell -9.62%, China Resources shares fell -2.04%, -0.55% shares fell Mtr.
While the Hang Seng index futures movement also experienced positive results, rising by 117 points or 0.53% to 22 254 from the closing position at the end of the previous stock exchange trading on 22 137 positions.
Thursday is no longer economic indicator data which shall be released, but keep in mind the global market movements, commodity prices and global conditions after acts of terror in Paris.
Technically, the index on the trading session today, Thursday (19/11) 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 tends to increase, an early indication of bullish index. In addition, RSI, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the first support level 22050 and 22000. If it fails at 22 137, then the next index is expected to tend to retest the resistance level 22150 and continued until the possibilities are in the 22200 area.
Sterling Stable BoE Broadbent Post Comment
Sterling jumped significantly against the dollar to its strongest level this week on the day yesterday, after the Deputy Governor Ben Broadbent stated that market participants should be more focused on indicators of broader economic growth than inflation projection only.
In his speech in front of the event which is held by Reuters, Broadbent warned investors not to focus too excessively on the central bank’s inflation projection, which was published earlier this month, changing the expected rate hike is longer than the original estimate. However, Pound managed to recover above the 1.5205 level after a few minutes of speech Broadbent details related to reports of inflation and economic capacity as a whole tend to be hawkish.
Chance of a rate hike the central bank in September next year are also more wide open, where short sterling contracts increased by about 2 -3 basis points to discount a rate hike in June or September, which indicates the awakening expectations of a rate hike earlier.
Technically, today’s trading session on Thursday (19/11), pound sterling-dollar pair has an opportunity to move in a positive trend.
The strengthening of the pound sterling mainly expected soon reexamine the minimal resistance at 1.5300 and maximum 1.5350. Meanwhile, if the pound sterling was able to break and stays below 1.5249 then another alternative scenario, ie the pound sterling likely to test support in 1.5210 area and 1.5160.
Gold Steady After Slump 5.5 Year Low
Gold prices slightly higher in choppy trading after the release of the minutes of the Fed meeting in October.
Choppy trading in the gold market is a classic case scenario, “sell on the rumor and buying the fact” after market speculation in the weeks and months about when the Fed will make the first rate hike in nine years.
One potential that makes the element bullish for the precious metals from the Fed’s meeting minutes are references that the increase in US interest rates will be adjusted in line with the conditions. Some market watchers believe that the Fed will raise interest rates by 0.25% in December. Fed minutes report also supports the ideas. Most market participants will be happy when there is an increase in interest rates, so that the general discourse of trade and markets can focus on something else.
Disappointed gold bullish condition because there is no strong safe-haven demand after a major terror attack in Paris. Simple safe-haven demand for gold in sight, has been defeated by a rise in the US dollar index, which reached a seven-month high this week.
World stock markets were mostly stable, is likely to weaken in the day yesterday, because there is gunfire and explosions in the neighborhood of Paris, which makes some uncertainty in the market. French authorities arrest the terrorists are hiding. However, so far, the market has returned to normal atmosphere.
Technically, gold on the trading session today, Thursday (19/11) potential reversal, testing positive trend, but prone to profit taking. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Band begins to shrink, thereby 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 1080.00 and re-test the maximum level of 1085.50. But if the gold price could not break and stays below 1074.20 then predicted gold prices could potentially test the Support 1071.78 and 1066.40.
