Markets this week: Increased volatility expected this week, Trade with Caution!

Daily Chart -[BEARISH ↘ **] Market is in a downtrend and is currently reacting below descending trendline resistance. We prefer to stay bearish for now and expect price to drop towards 246.80 support. Technical indicators are advocatingfor a bearish scenario as well.

Daily Chart -[BULLISH ↗ *] MCD has confirmed a bullish divergence pattern and has shaped a bullish exit above its descending trendline resistance. As long as price holds above 254.80 support, we prefer to staybullishexpecting priceto pushhighertowards 275.10 resistance level. A breakout above 263.10 resistance will strengthen the bullish scenario.Technical indicators are mixed for now, with prices holding above 21 EMA.

Daily Chart -[BEARISH ↘ **] 8058 JP has shaped a double top reversal.We stay bearish for now as long as price holds below 3335 resistance level. A drop towards 3165 support level is expected. Price is holding below 21 period EMA. However, MACD is flat for now.

Daily Chart -[BEARISH ↘ **] 8053 JP is currently in a downtrend and is holding below descending trendline resistance. We stay bearish, expecting price to take a pause at 3999 resistance level, before pushing down towards3811 support level. Technical indicators are turning bearish, with prices holding below 21 EMA and MACD showing a build up in bearish momentum.

MONTHLY Chart -[BULLISH ↗ **] S58 SP has shaped a bullish exit from its triangle pattern. We maintain a bullish directional bias for now, and expect price to shape a pause above 3.00 support level before pushing towards 3.60 resistance level. Technical indicators are mixed for now, with prices holding above 21 EMA and MACD showing a build up in bullish momentum. There is a possible MA golden cross forming, indicating a bullish scenario.

Prepared by:

Isaac Lim CMT, CFTe
Chief Market Strategist

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