• JP 225 index trades sideways after strong advance pauses

• Remains supported by the 50-day SMA and descending trendline

• Momentum indicators suggest more gains in the near term

The JP 225 index (cash) stormed higher after validating a double bottom pattern around the 30,400 region in late October. Although the price jumped to its highest level since September 20, it has been rangebound since then appearing unable to extend its advance.

If the bullish pressures persist, the price could revisit its recent resistance of 32,830. Breaking above the tight range, the index might face the August peak of 33,490. A jump above that region could pave the way for 33,830 before the all-time high of 34,006 gets tested.

Alternatively, should the bears attempt to push the price lower, initial declines could cease at the recent support of 32,045, which overlaps with the 50-day simple moving average (SMA). Diving below that floor, the price may descend towards the August bottom of 31,250. Even lower, the double bottom of 30,400 could provide downside protection.

In brief, the JP 225 index has been stuck within a range after posting a 1½-month high of 32,830. However, the odds are in favour of a bullish breakout as both the RSI and MACD are strengthening in their positive territories.