Hang Seng Friday Morning Strong Back
Hong Kong shares in early trading Friday morning (31/7), the Hang Seng index opened successfully rebounded from weakness earlier trade is limited but wary of bad data on retail sales in the country last June which will be released today. Data indicated Hong Kong Retail Sales YoY to decline sharply to 3.9%, from the previous release on 4.6%.
Hong Kong shares this morning supported by China Resources Land shares surge 1.63%, shares of China Resources Power Holdings 1:55%,% stake Kunlun Energy 1:51, 1:39% shares of Lenovo Group, China Life Insurance shares 1.04% out, MTR Corp shares 1:31%, Ping shares An Insurance Group Co. of China 1.68%, shares of Galaxy Entertainment Group 2.96%, and shares of Hong Kong Exchanges and Clearing 1:43%.
The Hang Seng Index shot by 152.95 points, or 0.62%, to 24650.93 points of the position be traded before closing at 24497.98 points and reached the highest level previously traded at 24872.70 and the lowest point at 24478.07 points previously.
Slightly different from the movement of the Hang Seng index futures this morning, which is only amplified by 66 points or 0:27%, to be 24 522 points from the previous closing position traded at 24 456 points and reached the highest level previously traded at 24 830 points and the lowest position before the 24 375 points.
Based on the results of the closing of the stock exchange before the end of trading, the analyst estimated that the movement of the Hang Seng Index today tend to try to extend weaken, to penetrate the first support at 24 265 points with MA5 under BB10 daily, if the movement of the index broke through the first support is expected to be tried penetrates the second support at 24 140 points with MA5 under BB10 daily.
If the movement of the index traded successfully reversed strengthened further, it is expected to try to penetrate the first resistance at 24.510 points with MA5 on BB10 H4, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 24 645 points with MA5 on BB10 H4.
Technically, the index on the trading session today, Friday (31/07) 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, signaling upside.
It is estimated, the index test the first resistance level of 24580 and 24650. If it fails at 24522, then the next index is expected to tend to retest the support level of 24500 and continued until the possibilities are in the 24440 area.
Sterling Flat Ignore Strengthening US Dollar
Strengthening of the US Dollar post positive GDP data has no impact on trade against Sterling. Currency pair remains flat Sterling-Dollar supported expectations the Bank of England will follow the Federal Reserve’s move to raise interest rates in the coming months.
UK economic data released this week keeping the strengthening of Sterling against most major currencies today. Such as the US, UK economic growth momentum is also solid in the second quarter. Solid economic growth and a declining unemployment rate made Governor of the Bank of England said time record low interest rates in coming to an end at the turn of the year.
Next week, nine of England’s monetary policy makers, called Monetary Policy Committee (MPC) will meet for the first time will release interest rate policy decisions, voting results (MPC Official Bank Rate Votes), as well as quarter forecast for the UK economy and inflation. Analysts predict interest rate is retained, but the results of the vote predicted no longer a unanimous agreement. Some predict at least three members of the MPC will be inclined to hike interest rates.
Technically, today’s trading session on Friday (31/07), 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 1.5650 and maximum 1.5710. Meanwhile, if the Pound was unable to break below 1.5602 and then survive another alternative scenario that is Pound chance to test support in 1.5520 area and 1.5475.
Gold Prices Continue to Weaken
Trading commodity futures exchange on Friday (31/7), gold and silver prices traded lower monitored by the continuing decline of the previous session when the demand for the US dollar increased amid improving economic conditions.
Ongoing trade in the Asian session, gold futures for December delivery was trading lower by noting a decrease of 0:30% at $ 1.085.40 per troy ounce on the Comex division of the New York Mercantile Exchange. Since this morning, the range of the price of gold has moved touched a session low $ 1.084.20 to $ 1.088.90 level daily and daily highs for the session.
Meanwhile, silver futures for September delivery traded lower by noting a decrease of 0,24% in the level of $ 14,670 per troy ounce. The movement of silver futures this morning seen moving touched a session low $ 14,635 to $ 14,715 daily and the level of daily highs for the session.
The price of gold is still visible under pressure to naturally decline since the previous session, when the demand for the US dollar increased amid improving economic conditions. Based on the official report released by the Bureau of Economic Analyst stated that the US gross domestic product growth has risen 2.3% in the second quarter after a decline of 0.2% experienced in the prior quarter.
But the decline in the gold price is still limited when slowing growth in the US labor market, where an official report released by the US Department of Labor said that the number of jobless claims has risen to a seasonally adjusted 267K last week from 255K in the previous week.
Meanwhile, strong pressure experienced by the price of gold has occurred in the week after the Federal Reserve has again maintained its monetary policy by leaving the interest rate they are at a low level 0:25% on the results of a policy meeting in June.
In this occasion the results of the FOMC meeting showed that amid the rise in the labor market, where job growth has increased a solid that accompanied the decline of unemployment in the US territory.
Technically, gold in today’s trading session on Friday (31/07) 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 1079.50 and re-test the maximum level of 1073.10. 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 1087.25 and 1092.50.
