Daily Markets

• Most Asian stocks declined on Tuesday after U.S. President-elect Donald Trump threatened to impose additional trade tariffs on China and other countries, ramping up fears of a renewed trade war. Trump said on his Truth Social network that he would impose an additional 10% tariff on goods from China and 25% on all products from Mexico and Canada. This measure was to cut down migrants and illegal drugs flowing across U.S. borders, he claimed. Stock indexes had gained in the previous session, as sentiment was buoyed by Trump's nomination of prominent investor Scott Bessent as Treasury Secretary. Bessent is seen holding a much more moderate view on trade tariffs, and considered by investors as a voice for Wall Street in Washington. Futures for India’s Nifty 50 index pointed to a weak open, as a two-day rally in the Indian benchmark now appeared to be cooling. Focus was also on shares of conglomerate Adani Group, after several of its top executives were accused of bribery and fraud by U.S. authorities. Chinese shares were positive on Tuesday, even as Trump threatened trade tariffs against the country. The Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.3%, and 0.4%, respectively, while Hong Kong’s Hang Seng index gained 0.6% While increased trade tariffs herald more economic headwinds for China, Beijing is also expected to introduce more fiscal stimulus to offset the impact of the tariffs. The country is set to hold two top political meetings in December, where investors will be watching for any more fiscal measures. UBS analysts said in a Monday note that Chinese fiscal measures were likely to dampen the impact of any potential trade tariffs. Beijing is also expected to impose retaliatory measures against the U.S. Still, the prospect of a renewed Sino-U.S. trade war heralds more potential disruptions in global trade, which could unsettle China's export dominance, while also impacting other Asian economies.

Gold – XAU

Gold on Monday made its intraday high of US$2721.21/oz and low of $2615.53/oz. Gold is down by 3.29% at US$2625.28/oz.

Technicals in Focus:

On the daily charts, gold trades higher than 20DMA (2197). If it drops below this level, it could lead to 2,100. The MACD is currently above the zero line and the histograms are showing an increasing trend, indicating that there may be upward movement in the coming sessions. The RSI is currently at 83.04, which is in the overbought region, suggesting there may be selling pressure in the next 2 to 3 sessions. The Stochastic Oscillator is also in the overbought territory but has given a positive crossover, indicating a bullish stance for intraday trades, but rebound in expected in all the overbought indicators.

Trading Strategy: Sell on Strength

Sell below 2639-2700 keeping stop loss closing above 2700, targeting 2600-2579-2560-2540-2519 and 2510-2500. Buy in between 2610-2489 with risk below 2480 targeting2639-2650 and 2662-2670-2684.

Silver - XAG

Silver on Monday made its intraday high of US$30.46/oz and low of US$30.04/oz settle downn by 3.23% at US$30.28/oz.

Technicals in Focus:

On daily charts, silver is sustaining above 20MA (25.05), breakage above will lead to 23.73. MACD is below the zero line and histograms are increasing trend, bringing a bullish stance in the upcoming sessions. RSI is in the oversold region, indicating a sell signal for now. The Stochastic Oscillator is in the overbought region and gives a positive crossover to show an upside move for the intraday trade

Trading Strategy: Buy on Dips

Buy in between 30.10-27.50, targeting 31.30-32.10-32.60 and 33.10-33.80-34.20 with stop loss should be placed on the breakage below 27.00. Sell in between 30.50-34.30 with a stop loss above 35.00 targeting 30.25-29.70 and 29.10-28.65-28.00.

Oil - WTI

Crude Oil on Monday made an intra‐day high of US$71.25/bbl, an intraday low of US$68.60/bbl, and settled down by 3.20% to close at US$68.93/bbl.

Technicals in Focus:

On daily charts, oil is sustaining above its 100DMA i.e. 75.37, a support level, and breakage above will call for 77.48. MACD is above the zero line and histograms are in increasing mode will bring a bullish stance in the upcoming sessions. The Stochastic Oscillator is in the overbought region, giving a negative crossover to confirm a bearish stance; while the RSI is in the neutral region, more upside can be expected to reach the overbought region, which is highly probable.

Trading Strategy: Neutral to Sell

Sell in between 69.00-76.85 with stop loss at 77.00; targeting 69.20-68.50-67.50 and 66.90-66.10-65.05. Buy above 68.50-64.05 with risk daily closing below 64.00, targeting 70.90 and 71.65-73.00-73.90.

EUR/USD

EUR/USD of Monday made an intraday low of US$1.0448/EUR, a high of US$1.0529/EUR, and settled the day up by 0.144% to close at US$1.0492/EUR.

Technicals in Focus:

On daily charts, prices are sustaining above 100DMA (1.0800), which becomes immediate support, a break below will target 1.0717. MACD is above the zero line and histograms are increasing mode, bringing a bullish view. Stochastic is in oversold territory, giving negative crossovers to the bullish outlook for intraday. 14D RSI is currently in a neutral region and giving no directions to consider right now.

Trading Strategy: Neutral to Sell

Sell below 1.0490-1.0840, targeting 1.0450-1.0400-1.0340 and 1.0290-1.0210 with stop-loss at daily closing above 1.1400. Buy above 1.0540-1.0210 with risk below 1.0210 targeting 1.0490-1.0540-1.0600 and 1.0660-1.0700-1.0790.

GBP/USD

GBP/USD on Monday made an intra‐day low of US$1.2540/GBP, a high of US$1.2612/GBP, and settled the day down by 0.134% to close at US$1.2567/GBP.

Technicals in Focus:

On daily charts, prices are sustaining above 50DMA (1.2674) is becoming a support level. 14-D RSI is currently in a neutral region and direction is difficult to predict on an RSI basis. The Stochastic Oscillator is in oversold territory and gives a positive crossover to confirm a bullish stance. MACD is above the zero line, but histograms are increasing leading to movement.

Trading Strategy: Neutral to Buy

Based on the charts and explanations above; buy in between 1.2560-1.2380 with a target of 1.2600-1.2670-1.2750 and 1.2800.1.2890-1.2990 with a stop loss closing below 1.2380. Sell in between 1.2590-1.3260 with targets at 1.2520-1.2450-1.2380 and 1.2340-1.2290 with a stop loss of 1.3200.

USD/JPY

USD/JPY on Friday made an intra‐day low of JPY153.54/USD an intraday high of 154.71/USD, and settled the day up by 0.0778% at JPY154.17/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 100DMA (155.35), major support on the daily chart. 14-D RSI is currently in the overbought region and chances of downward are expected based on RSI. MACD is above the zero line but histograms are in decreasing mode which might lead to downward movement. The Stochastic Oscillator is in overbought territory and signaling to sell as it has given a negative crossover to confirm a bearish stance.

Trading Strategy: Neutral to Sell

Sell below 155.00-159.50 with risk above 159.00 targeting 154.60 and 153.70-153.00-152.10. Long positions above 154.00-150.00 with targets of 156.00-157.00-157.80 and 158.40-159.00 with stops below 150.00.