Kospi Index Eroded Weakening Crude Oil
At the opening of South Korean stock market trading Wednesday (23/3), the Kospi started negative, when it was observed down -2.26 points or -0.11 percent, at 1994.55. Weakening the Kospi pressure drop in crude oil prices.
Oil prices slipped from their highs after US industry data showed a larger than expected in domestic supplies. American Petroleum Institute (API), an industry group, said after the completion of the futures market on Tuesday that US crude oil stocks rose nearly 9 million barrels last week reached a record high of nearly 532 million.
Brent crude futures traded at $ 41.59 a barrel, down 0.5 percent in Asian trade on Wednesday but still not far from a three-month high at $ 42.54 on Friday.
In early trading this morning, shares of major South Korean capital fell, with Samsung shares fell -0.08 percent, Korea Electric Power shares fell -0.17, Hyundai Motor shares fell -0.63 percent, Cheil Industries shares fell – 0.34%, shares of Hyundai Mobis fell -0.77%.
As for the Kospi index futures tracked down -0.35 points or -0.14% at 246.05, down from a previous close at 246.40.
Technically,
Resistance: 246.50 246.90 247.60 Prev. High / Low: 246.40 / 245.70
Support: Running 245.00 245.45 246.00 Price: 246.15
Comment: For intraday trade today suggest Sell at level 246.90 stop and reversal during a break above the 247.10 level targets at the level of 245.50 and target of reversal at the level of 248.00.
Sterling Experiencing Pressure Against US Dollar
Pound remains threatened by the pressure of the natural weakening against the US dollar despite growing conditions in the United Kingdom observed stable inflation. This has been shown by a report from the Office for National Statistics which states that growth in UK consumer inflation rose 0.2% in February after a natural decline of 0.8% in January.
While the annual basis, UK consumer inflation has risen 0.3% in February after 0.3% in January. In addition, for the UK core consumer inflation has risen 1.2% in February.
At the same time, the Office for National Statistics also reported that inflation growth in UK retail rose 0.5% in February after a natural decline 0.7% in January and to the growth of inflation UK homes rose 7.9% in January after rising 6.7% in December ,
Meanwhile, the terror bombing in the city of Brussels, Belgium has managed to steal the attention of the market resulting in investors turned to safer assets one of them is gold. Currently, spot gold futures April contract rose 0.81% observed at the level of $ 1.254.10 per troy ounce on the Comex division of the US.
Technically,
Resistance: 1.4250 1.4290 1.4330 High / Low: 1.4225 / 1.4211
Support: 1.4200 1.4150 1.4100 Running Price: 1.4219
Comment: For intraday trade today suggest Buy at the level of 1.4200 stop loss at the level of 1.4165 and targets 1.4298.
Brussels Explosion Trigger Gold Prices
Gold prices had rallied up to 1% on Tuesday as investors switched hunt safe haven assets after the deadly bomb attacks hit the airport and railway station in the Belgian capital, Brussels. The trading session ended below the level of $ 1,250 / oz.
The increasing demand for safe-haven bullion has helped offset the impact of hawkish comments Atlanta Fed President Dennis Lockhart and San Francisco Fed President John Williams earlier in the week, which suggests still has room to raise interest rates next month.
Previous gold has recorded a decrease of 3-day streak amid uncertainty about the pattern of US rate hike. Gold prices recorded gained about 20% so far in 2016, after slumping 10% in the past year on speculation about an interest rate hike.
While on the technical side, the potential for further bearish movement still open as stochastic and RSI looks downward below the center line on 4-hour chart. The penetration is consistently below the $ 1,242.85 area likely to push down further to test the MA-200.
Technically,
Resistance: 1246.40 1248.60 1251.10 High / Low: 1249.10 / 1242.70
Support: 1242.70 1239.00 1237.40 Running Price: 1244.00
Comment: For intraday trade today suggest Buy at level 1240.00 and stop loss at the level of 1238.00 and the target at the level of 1250.00.
