Depressed Kospi negative sentiment on Wall Street
Kospi fell, pressured by negative sentiment on Wall Street that collapsed overnight. US stocks slip after a continued decline in world oil prices made investors worried about the outlook for corporate earnings-based energy.
Nymex oil prices overnight again scored a new record low of 5 years $ 60.42 after rising US oil stocks confirms the fears of the market will be abundant supplies of oil in the market. Kospi futures were down 0.75% and is now trading at 245.55.
Investors also look unimpressed with the decision the Bank of Korea (BOK), which re-keeping interest rates at a low level of 2% at the December meeting. Although this according to predictions, but most investors seem to expect the BOK to continue the cycle of interest rate cuts by widespread threat of economic slowdown and slowing inflation. BOK has lowered interest rates in August and October last meeting in order to prevent an economic slowdown in Asia’s biggest 4.
Technically, the index on the trading session today, Thursday (11/12) 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 rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 245.10 and 243.20. If it fails at 247.00, then the next index is expected to tend to retest the resistance level of 248.10 and continued until the possibilities are in the 250.25 area.
Comments Carney Curb Sterling rate
Sterling traded higher against the greenback weakened on Wednesday, but had to give up against the Euro, after the Bank of England Governor Mark Carney said inflation is likely to fall below 1%. Which erodes the expected increases in interest rates next year.
Sterling continued to move lower since July, mainly due to the adjustment of market expectations about the first rise in interest rates. Currently, the market predicts the increase will occur by the end of next year or early in 2016, compared to previous predictions in early 2015.
“With the expectation of rising interest rates are on the skids, making people think if Sterling may have moved a bit too far,” said Paul Robson, an analyst at RBS in London. “We are still negative on Sterling over the next 6 months. Some markets may be surprised by the level of economic slowdown at the beginning of next year.”
Technically, today’s trading session on Thursday (11/12), pound sterling-dollar pair likely to move in a positive trend.
The strengthening of the pound sterling primarily expected soon reexamine the minimum resistance at 1.5760 and 1.5810 maximum. Meanwhile, if the Pound was unable to break and stays below 1.5713 then another alternative scenario that Pound chance to test support in 1.5700 and 1.5650 area.
Gold Price Movement Stuck in Top Range 1.5 Months
LLG gold price at the close of trading on Wednesday monitored closed with weakened early this morning. The weakening of the closing price of gold LLG early this morning fueled by a boost to technical factors.
The series of positive sentiment towards gold was observed to have not managed to give impetus to the strengthening of the gold price in trading on Wednesday. Encouragement of technical indicators Bollinger Bands on the foundation can not be re-strengthening of the gold price. The position of the price movement that has penetrated the upper BB indicates overbought movement and triggered a sell-off of the rose gold.
Related to the fundamental impetus to the movement of the gold price, in trading Wednesday fundamental influence tended to be on the positive side so as to curb attenuation. Starting from the value of the US dollar continued downward trend, the effect of the release of Dennis Lockhart related position statement on the potential increase in US interest rates, and global stock markets are moving flushed, making a positive fundamental impetus to gold. However, the strong technical indications are still more powerful that the gold price should end the sharp strengthening trend in the last two trading days.
At the close of trading on Wednesday early this morning, the gold price closed at LLG monitored weakened. Gold prices LLG on early this morning closed down 0.41% to $ 1226.30 price level / t oz or lower $ 5.05 / t oz.
While the trade gold futures on the Comex, gold prices also closed with weakened early this morning. Comex gold futures for February 2015 contract closed down 0.23% to the price level of $ 1231.5 / t oz or down $ 2.8 / t oz.
Analyst predicts the price of gold would have an incentive to weaken in today’s trading. It is based on the expectations of the release of positive data on US retail sales. Related to price movements, predicted prices will tend to weaken to try to penetrate the $ 1,221 level with advanced potential to $ 1,213. otherwise in case of reinforcement, the price will try to penetrate the $ 1,230 level with advanced potential to $ 1,240.
Technically, gold trading session today, Thursday (11/12) potential reversal, tested positive trend, but prone to taking profit. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Bands that began to shrink, thus giving impetus to the gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1232.10 and re-test the maximum level of 1237.87. However, if the price of gold was unable to break and stays below 1228.00 then estimated the price of gold could potentially test the 1225.78 and 1220.40 Support.
