*Free SGX Stock Picks* Special Offer!

Monday, February 22, 2016

GOLD & CRUDE Oil Forecast for The Week Ahead

GOLD
Gold market fall for the course of the week but got enough supporting hands at 1190.00 and got a strong buyers who pulled the market to 1236.00 since in last week we got the extraordinary breakout for the gold and a little down was expected to come and we found the prices too coming down for the course of coming week we are finding the yellow metal to be bit risky as a sort of undeceive candle is formed on the cart.  Trading Signals Free Trial
Forecast
Selling seems to be a wise decision in the yellow metal where buying can only take place only above 1245.00  where a down move can be expected till 1140..00
CRUDE
Crude oil market initially rallied during the course of the week, a downfall was noticed on Friday as well. On the current scenario chart of crude oil speaks for the consolidation for the coming days too. As oil had touched the lows in last few days and tried hard to jump from the support somewhere it got succeeded too but not reliable. To gain the trust the of investors oil need to sustain above the handle of 41.00 which can be a safer hand to invest. 
Forecast
For the course of the week we can initiate buying above 36.00 which can be hold till 40.00 as the 40.00 is a break at which the market will test to break the resistance. If the resistance get broken then we can look forward to the levels of 46.00

Forex Outlook for the Week Ahead

EUR/USD
EURUSD initially fell during the day on Friday, but bounced in order to form a hammer. This happened on Thursday as well, and right at the 1.1050 level where we would anticipate seeing quite a bit of support. With that being the case, the market looks as if it is ready to continue going higher now. If we can break above the top of both hammers, the market should then try to reach towards the 1.13 level, perhaps even higher than that. 1 Week Free Trial in FOREX
Forecast- EURUSD fell quite a bit during the course of the week, testing the 1.1050 level. Ultimately, the market looks as if there could be buyers there, so we are willing to go long on a short-term chart, but at this point in time it’s difficult to make a longer-term trade as there isn’t much in the way of room in order to continue to place a longer-term trade. With that being said, we look to the shorter-term charts in order to place some type of position.
GBP/USD
The GBPUSD pair initially fell during the day on Friday but found enough support near the 1.4250 level to turn things around and form a bit of a hammer. At this point in time, it looks like we will probably bounce. However, there is a significant amount of resistance above that should continue to work against the value of the British pound. We recognize the 1.45 level is where we start to see serious selling opportunities going forward.
Forecast- The GBPUSD pair fell significantly during the course of the week, testing the 1.42 level for support. Ultimately, the market looks as if it will continue to go lower but we may get a slight bounce in this general vicinity. Rallies at this point in time should be selling opportunities, as the British pound continues to soften in general. We believe that this market is heading down to the 1.40 level given enough time, and as a result remain very bearish overall and believe that the market will continue to favour the short-sellers.
AUD/USD
AUDUSD initially fell on Friday, but turned back around to form a somewhat positive candle. However, there is quite a bit of resistance above and as a result we are not willing to start buying this particular market right now. On the other hand, if we can break above the 0.7250 level, which is the top of a shooting star, we would be buyers.
Forecast- AUDUSD pair fell during the beginning of the week, but found enough support below to turn things back around and form a hammer again. This happened the previous week as well, and we are now pressing up against what had previously been the uptrend line. A break down below the bottom of the hammer would be a rather negative sign, and a move below the 0.70 level very negative as well.
USD/JPY
The USDJPY pair went back and forth on Friday, showing quite a bit of reluctance to make any real move. Ultimately, this is a market that should continue to go lower, but we also recognize that a short-term bounce could happen. It’s not until we get above the 150 level that we would be buyers, so we are looking for weakness to sell war break down below the bottom of the range for the session on Friday.
Forecast- The USDJPY pair initially tried to rally during the course of the week, but found enough resistance of the 150 level to turn things around and form a somewhat negative candle. Because of this, we find yourselves below the 113 level and it now looks as if the market is ready to go down to the 110 level. There is a significant amount of support in that general vicinity though, so we do not think that the market will go much lower than that anytime soon. Keep in mind that this market tends to be very sensitive to risk appetite, so as stock markets ago, so will this pair.

Friday, February 19, 2016

Bursa Malaysia- FBM KLCI will bullish movement in coming week, test the level of 1705

Weekly Wrap of KLCI
The week started with bearish sentiments and traded range bound thorough the week and ended on a positive note on Friday. The FBM KLCI index gained 33.27 points or 2.04% on Friday. The FBM KLCI index lost 5.14 points or 0.31% on Friday. The Finance Index fell 0.26% to 13986.46 points, the Properties Index up 0.46% to 1128.18 points and the Plantation Index down 0.82% to 7924.58 points. The market traded within a range of 11.39 points with a high of 1685.23 and a low of 1673.84. Free Trial Signals for next Week
The KLCI extended its mid-day losses by ending lower at 1674.88 points amid overnight losses in US market. The downtrend in our benchmark index was dragged down by losses in heavyweight counters such as IOI Corp and Genting Bhd. 
Market Forecast for week ahead:
The KLIC index is expecting it to continue its bullish movement in coming week on the back of the expectation of the potential rebound in the Crude Oil price, however the market can take resistance at the level of 1685 and the crossover of this level can lead to a bullish movement in near term and after that the market can test the level of 1705.
Technical indicators:
RSI for this week is 50.809 with CCI at 12.421. Besides, difference line of MACD -10.266.
Global factors and World Indices
  • The rally in Asia stocks fizzled out Friday, as a renewed weakening in the price of oil dampened sentiment and safe haven assets such as the yen received a boost.
  • Tokyo stocks closed down sharply on Friday, as a stronger yen dented exporters and another fall in oil prices hammered commodity and energy shares.The benchmark Nikkei 225 index at the Tokyo Stock Exchange fell 1.42 per cent, or 229.63 points.
  • China stocks slipped on Friday in line with a broader correction across global equity markets, but posted solid gains on the week.Shanghai Composite Index ended down 0.1 per cent at 2,860.02 points.
  • Hong Kong stocks tracked global markets lower on Friday as energy shares pulled back after an oil price rally paused.The Hang Seng index fell 0.4 per cent for the day, to 19,285.
  • American's expectations for the economy declined in February to a three-month low as optimism propelled by job growth and cheaper gasoline at the start of the year faded. A monthly measure tracking the economic outlook dropped to 42.5 from a January reading of 4
  • China's central bank will inject 10 billion yuan (S$2.15 billion) into the money markets through seven-day reverse bond repurchase agreements .This will bring the total net drain from the market this week to 455 billion yuan, the most in three years.
  • The yen was broadly firmer early on Friday, having hit a fresh 2-1/2 year high on the euro thanks in part to renewed demand for the safe-haven Japanese currency as Wall Street snapped a three-day rally.
  • The number of people who filed for unemployment assistance in the U.S. last week fell to a 12-week low, remaining in territory usually associated with a firming labor market.
  • Minutes from the European Central Bank's January policy meeting revealed that members were unanimous in concluding that the monetary policy stance needs to be reviewed and possibly reconsidered in March to secure a return of inflation rates towards levels below, but close to, 2%.
  • Gold fell for the first time in three days as investors weighed losses in financial markets and crude oil against the outlook for the U.S. Economy
  • Oil futures fell in Asian trade on Friday as a record build in US crude stocks stoked concerns about global oversupply, outweighing moves by oil producers including Saudi Arabia and Russia to cap oil output.
  • US crude inventories rose by 2.1 million barrels last week, to a peak of 504.1 million barrels, the third week of record highs in the past month, data from the US government's Energy Information Administration (EIA).
STATISTICS
  • China's vehicle sales rose 7.72 % in January year-on-year to US$2.5 million.The China Association of Automobile Manufacturers said last month that it expects vehicle sales to grow 6 per cent in 2016, quickening from the 4.7 percent rise last year.
  • Singapore's domestic wholesale trade shrank by 15.9 per cent year-on-year in the fourth quarter of 2015, partly due to lower prices of petroleum and chemical products.
  • Singapore's overall domestic wholesale trade would have registered a 13.8 per cent increase.
  • Confidence at Japanese manufacturers remained largely subdued in February and the mood was seen deteriorating over the coming three months, a Reuters poll showed, highlighting concerns about slowing global growth and turbulent markets.
  • South Korea's producer prices in January fell 3.3 per cent in January from a year ago, the Bank of Korea said, the slowest decline since December 2014.
  • Japan’s all industries activity index fell more-than-expected last month,to a seasonally adjusted -0.9%, from -1.1% in the preceding month whose figure was revised down from -1.0%.U.S. gasoline inventories rose more-than-expected in the last quarter,it rose to a seasonally adjusted annual rate of 3.036M, from 1.258M in the preceding quarter.
  • U.S. crude oil inventories rose less-than-expected last month,it rose to a seasonally adjusted annual rate of 2.147M, from -0.754M in the preceding month.
  • The euro zone’s current account fell less-than-expected last month,current account fell to a seasonally adjusted 25.5B, from 26.9B in the preceding month whose figure was revised up from 26.4B.

Friday, February 12, 2016

Trading Signals WELLCALL ( P7231.KL) ENTER ABOVE 2.71 : TARGET 2.86

WELLCAL is following long term uptrend. It has consolidate by taking support near 2.48. It is having its resistance at 2.71. It is expected to breaks its resistance of 2.71 and move up to the target of 2.086. Live Trading Signals 
It is currently consolidating in the range of 2.48 - 2.71. Looking at its previous trend, it is expected to go up to 2.86 in short term.
It is technically strong counter supported by RSI, MACD and other technically indicators which are giving a strong signal of bearish trend ahead. Its a nice opportunity to buy above 2.71 and gain a considerable amount of net profit in contra.
Technical Justification
Looking at it technically WELLCAL took support at 2.48 and is moving in the range of 2.48 - 2.71. It is consolidating and is expected to take uptrend in near future. It has been increasing with consolidation looking from the previous trend. Its near term support is at 2.56. As soon as it breaks this resistance it is expected to move up to our target price of 2.86 in contra.
MACD - MOVING AVEREGAE CONVERSION DIVERSION
MACD is supporting the uptrend of WELLCAL. Looking at the simple moving average, the fastest moving average curve has crossed slow moving curve from the bottom and is moving up, this is a signal of uptrend in near future. The price line is currently at 0.002 and signal line at 0.015. As soon as the fastest MACD crosses the slowest MACD, a strong buy signal can be seen. Entering above the resistance level of 2.71 is advisable.
BOLLINGER BANDS
The price line has touched the lower band and rebounded. It is expected to follow uptrend and cross middle band in near future creating a strong buy signal.
RELATIVE STRENGTH INDEX
RSI is near 50 , currently at 49.165. Which indicated that the investors are buying the counter and hence it is expected the price would take the uptrend due to buying pressure.
TRADING VIEW
Trading should be calculative and done at correct levels. It is very important to make entry and exit at right level. An investor should always enter above the resistance level and should close his position as soon as the price has achieved the target or has hit the SL (stop loss). The entry level of WELLCAL is above 2.71 with SL of 2.56 and target price of 2.86 / 2.90.

 
Design by Free WordPress Themes | Bloggerized by Lasantha - Premium Blogger Themes | Grants For Single Moms