Kospi Sign Red Zone
South Korea’s stock exchange on Wednesday (6/5) opened with the Kospi reversed from the previous trading. After trading off day yesterday commemorated children in the country, natural Kospi selling pressure is quite large, especially leading stocks.
Stocks weaken the index as shares Posco Plantec opened fell by 14.82%, shares of Able C & C slumped at 7:08%, shares Yungjin Pharmaceutical fell by 6.96%, shares of affiliate LG is LG Life Science dipped by 6.91%, and the stock KEPCO Plant Service & Engineering fell by 5.86%.
The movement of Kospi index opened lower this morning significantly by 10.2 points or 0:47% being 2122.03 points from the previous closing position at 2132.23 points by reaching the previous high at 2139.30 points and the previous low at 2128.72 points. Likewise, the movement of Kospi index futures opened lower this morning which significantly by 1:37 or 0:51% points 265.96 points from the previous closing position on 267.33 points to reach the previous highs at 268.56 points and the previous low at 266.99 points.
Based on the previous closing, the Analyst Vibiz Research Center estimates that today’s Kospi index movement will try to penetrate the next support at 266.35 points by the middle MA5 BB10 daily, if the movement of the index broke through the first support is expected to try to penetrate the next support at 265.10 points with MA5 middle BB10 daily.
If the movement of the index managed to turn toward stronger, then the expected movement of the index will try to penetrate the resistance at 268.80 points by the middle MA5 BB10 daily, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 269.50 points by the middle MA5 BB10 daily.
Technically, the index likely to weaken on the trading session today, Wednesday (06/05), 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 263.25 and 260.90. If it fails at 265.05, then the next index is expected to tend to retest the 266.90 resistance level and continued up to the possibility of being in the 268.25 area.
Pounds Soar Amid Weakening US Dollar
Pound sterling rose above the 1.5200 level as the weakening US dollar responds to reports that the US trade deficit worse than estimated.
So far the pairing GBPUSD strengthened 0:54% at the level of 1.5202, after reaching the highest point at 1.5216 intraday and daily lows at 1.5090.
The uncertainty of the timing of interest rate hikes the Fed again dominate the market sentiment that the US Dollar selling action, especially after reports the US trade balance deficit gap to its worst level in the past two decades indicates that international trade is the main obstacle in the growth of the US economy at the beginning of the year.
Furthermore, investors will await key employment report nonfarm payrolls. Other data released with ISM services sector index rose to 57.8 from the previous 56.5 gives hope that the slowing US economy in Q1 2015 is only temporary.
Technically, the trading session today, Wednesday (06/05), pound sterling-dollar pair has an opportunity to move in a negative trend.
The weakening of the pound sterling mainly expected soon reexamine the minimum Support at 1.5125 and maximum 1.5050. Meanwhile, if the Pound able to break and hold above 1.5172, then the other alternative scenario that is likely to test resistance Pound in 1.5210 and 1.5260 area.
Gold Prices Go Down
Gold prices approaching $ 1,200 on Tuesday after the ISM Manufacturing PMI are reported to have improved.
On the Comex in New York Mercantile Exchange, gold futures for June delivery fell $ 9.20, or 0.78%, to trade at $ 1,198.00 a troy ounce the previous day, the yellow metal rose $ 12.30, or 1:05%, to close at $ 1,186.80. From the data released today showed that the ISM Non-Manufacturing PMI has experienced an increase in March. From the Institute for Supply Management reported that the ISM Non-Manufacturing PMI rose 57.8 from 56.5 in the previous month. The market had expected the ISM Non-Manufacturing PMI fell slightly to 56.2
In addition, other official reports are the trade deficit in the US has narrowed in April. According to a report released by the US Department of Commerce stated that the US trade deficit has narrowed, seasonally adjusted -51.4B in April, from -.35.4B in March.
On the other comex trading, silver futures for July delivery rallied 14.6 cents, or 0.89%, at the level of $ 16.58 a troy ounce, copper for July delivery fell 1.4 cents, or 0.48%, to trade $ 2,935 per pound.
Technically, gold on the trading session today, Wednesday (06/04) 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 1199.50 and re-test the maximum level of 1205.25. But if the gold price could not break and survive below 1194.70 then predicted gold prices could potentially test the Support 1192.25 and 1187.50.
