• JP 225 index halts its aggressive retreat at the 50-day SMA

• Its attempt to rebound though seems to be running out of juice

• Momentum indicators are skewed to the downside

The JP 225 index (cash) advanced after validating a double bottom pattern around the 30,400 region in late October, breaking above the crucial descending trendline. However, the price experienced a pullback following its failure to post a fresh 2023 high, which ceased around the 50-day simple moving average (SMA).

Should the recent bounce resume, the bulls could target the August peak of 33,490. A jump above that region could pave the way for the November high of 33,857, which also held strong in July. Surpassing that zone, the price could revisit its 2023 peak of 34,006.

On the flipside, if the index reverses back lower, the December support of 32,157 could act as the first line of defence. Diving below that floor, the price may descend towards the November support of 32,045. Even lower, the August bottom of 31,250 may provide downside protection.

In brief, the JP 225 index experienced a mild pullback following its repeated inability to cross above the 33,857 mark. Nevertheless, the positive technical picture remains intact as the price is holding above the crucial trendline and both the 50- and 200-day SMAs.