World Oil Lightening Surge Korea Exchange
Venturing South Korean stock market trading Friday morning (28/8), the Kospi index looks managed to continue strengthening action previously traded and even managed to record the highest increase in one week, where this morning’s gains supported by a surge in world oil prices were achieved at a price of $ 42.49 / barrel or jumped sharply by 8.9%.
This morning, it appears the stock market South Korea managed strengthened by a surge in shares of energy, where the shares of LG Chem shot of 7.73%, S-Oil Corporation 5:30%, SK Hynix 4.93%, but it also strengthened by a surge in shares of Samsung Electronics 1:40%, LG Electronics 1:50%, 1.80% shares of Samsung Securities, Hyundai Securities 2.86%, but shares this morning’s automotive sector should record a sharp decline as stocks Kia Motors -3.20%, and -1.36% Hyundai Motor shares.
The Kospi index opened this morning seem soared by 20.86 points, or 1:09%, by becoming 1928.86 points from the previous closing position is trading at 1908.00 points position and managed to record the highest increase earlier traded at 1920.39 points and the lowest position before the position 1898.98 points.
Likewise, the movement of the futures index Kospi in this morning, who also opened positive at 2:32 points, or 1%, to be 231.26 points from the closing position traded earlier at position 228.94 points and managed to record the highest increase was traded earlier at position 230.34 points and the lowest decline earlier on the position of 228.11 points.
Based on the results of the closing of trading on the stock exchange before, then Analyst estimates that the movement’s Kospi index today will tend to continue strengthening traded before, by penetrating the first resistance at position 230.75 points with MA5 on BB10 H4, if the movement of the index broke through the first resistance then expected to try penetrate the second resistance at 232.10 points with MA5 position on BB10 H4.
If the movement of the index return turned toward lower back, it is expected to try to penetrate the first support at position 227.35 points with MA5 under BB10 daily, if the movement of the index broke through the first support it is expected to try to penetrate the second support in position 226.20 points with MA5 under BB10 daily.
Technically, the index on the trading session today, Friday (28/08) 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, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the first resistance level of 231.25 and 232.00. If it fails at 230.65, then the next index is expected to tend to retest the support level 230.30 and continued up to the possibility of being in the 229.75 area.
Sterling Stuck at Lowest Level
Pullback expected rate hike in the UK made sterling fell sharply in trading Wednesday to reach the lowest level in three weeks. Market participants now expect the Bank of England will raise interest rates in the third quarter of 2016, retreating from the previous forecast in early 2016, when the Bank of England’s quarterly inflation report released three weeks ago.
Meanwhile, the stock market stabilizes benefit the dollar despite expectations of a rate hike in the US also retreated. US economic data in the last two days have boosted the performance of the dollar in since Tuesday. The greenback has the potential to continue strengthening if the gross domestic product (GDP) released today in line with expectations or better and the UK will report GDP data on Friday.
US GDP second estimate of the second quarter (year-on-year) is expected to rise 3.2%, higher than the first estimate of 2.3%. Other data to be released is estimated claims for unemployment benefits fell to 275,000 last week, compared to 277,000 the previous week.
Technically, the trading session today, Friday; at (28/08), 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 1.5360 and maximum 1.5300. Meanwhile, if the pound sterling was able to break and hold above 1.5418, then the other alternative scenario that is Pound chance to test resistance in 1.5450 and 1.5500 area.
Gold Towards Worst Weekly Decline Since March
Gold closed lower for the 4th day in a row on Thursday, and was on track towards the biggest weekly decline since March, as further appreciation of the US dollar and global stock market rally dimmed the appeal of precious metals investments.
US stocks and the greenback jumped after data showed US economic growth is faster than the initial estimate in the 2nd quarter, while initial jobless claims decreased more than forecast last week. The data that exceed those expectations leads to a stronger economy, so as to boost the performance of the dollar and increase the chance the Federal Reserve to raise interest rates soon, and it’s the 2nd factor that can suppress the gold price down even further.
Bullion recorded has lost about 3.2% of the closing price on Friday of last week at around $ 1,159 / oz.
Technically, gold on the trading session today, Friday (28/08) 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 1133.25 and re-test the maximum level of 1138.10. But if the gold price could not break and stays below 1128.30 then predicted gold prices could potentially test the Support 1125.10 and 1120.50.
