Daily Markets

• Most Asian stock markets advanced on Monday with Chinese markets leading gains following a string of positive business activity readings from the country, although overall gains were held back by threats of more tariffs from U.S. President-elect Donald Trump. Regional markets took a positive lead-in from a record-high close on Wall Street on Friday, as investors maintained bets that the Federal Reserve will cut rates later in December. But U.S. stock index futures edged lower in Asian trade, following Trump's tariff threat. China's factory activity expanded in November, with the Caixin Manufacturing PMI rising to 50.3 from 50.1 in October, data showed on Monday. This marks the highest reading since June, driven by stronger output and new orders, reflecting the positive effects of recent government stimulus measures. The government PMI data released over the weekend also showed that China’s manufacturing sector grew slightly more than expected in November. The positive factory readings came after Beijing rolled out a string of aggressive stimulus measures since late-September to support economic growth. Investors are now holding out for more supportive measures from China, especially in the face of heightened trade headwinds under Trump. Gains in Asian markets were held back by Trump threatening to impose 100% tariffs on goods from BRICS nations (Brazil, Russia, India, China, and South Africa) if they move to undermine the U.S. dollar by creating or backing alternative currencies. Trump emphasized that countries attempting to replace the dollar in global trade would face severe economic consequences, effectively losing access to the U.S. market. This comes after Trump's last week vow to impose higher import tariffs against China, Mexico and Canada, which could spark a renewed trade war between the world's biggest economies. South Korea's KOSPI index gained 0.2%, while the Philippines' PSEi Composite index climbed 0.8%. Markets will be focused on a slew of key economic cues this week for more cues on U.S. and global interest rates. Australia is set to release its third-quarter gross domestic product figures on Wednesday. Fed Chair Jerome Powell is set to speak on Wednesday, while key U.S. nonfarm payrolls data for November is also due later in the week.

Gold – XAU

Gold on Friday made its intraday high of US$2666.21/oz and low of $2633.92/oz. Gold is up by 0.439% at US$2649.34/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 2650-2700 keeping stop loss closing above 2700, targeting 2600-2579-2560-2540-2519 and 2510-2500. Buy in between 2639-2489 with risk below 2480 targeting 2650 and 2662-2670-2684.

Silver - XAG

Silver on Friday made its intraday high of US$30.16/oz and low of US$30.16/oz settle up by 1.171% at US$30.55/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 30.20-27.50, 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 30.70-34.30 with a stop loss above 35.00 targeting 30.25-29.70 and 29.10-28.65-28.00.

Oil - WTI

Crude Oil on Friday an intra‐day high of US$69.49/bbl, an intraday low of US$68.07/bbl, and settled down by 0.494% to close at US$68.36/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 68.10-64.05 with risk daily closing below 64.00, targeting 70.90 and 71.65-73.00-73.90.

EUR/USD

EUR/USD of Friday made an intraday low of US$1.0540/EUR, a high of US$1.0596/EUR, and settled the day up by 0.295% to close at US$1.0578/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 1.0590-1.0840, targeting 1.0450-1.0400-1.0340 and 1.0290-1.0210 with stop-loss at daily closing above 1.1400. Buy above 1.0510-1.0210 with risk below 1.0210 targeting 1.0490-1.0540-1.0600 and 1.0660-1.0700-1.0790.

GBP/USD

GBP/USD on Friday made an intra‐day low of US$1.2671/GBP, a high of US$1.2749/GBP, and settled the day up by 0.431% to close at US$1.2736/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 1.2670-1.2380 with a target of 1.2750 and 1.2800.1.2890-1.2990 with a stop loss closing below 1.2380. Sell in between 1.2750-1.3260 with targets at 1.2670-1.2590-1.2520 and 1.2450-1.2380-1.2290 with a stop loss of 1.3200.

USD/JPY

USD/JPY on Friday made an intra‐day low of JPY150.44/USD an intraday high of 153.22/USD, and settled the day down by 0.877% at JPY151.04/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 152.00-159.50 with risk above 159.00 targeting 154.60 and 153.70-153.00-152.10. Long positions above 151.00-149.00 with targets of 152.10-153.00-153.70 156.00-157.00-157.80 with stops below 150.00.