Trade Setup For 22nd July

Here are the zones I'm watching for 22nd July:

Resistance

1263-1261.75
1269.25-1270.25
1277.25-1278.50
1285.75-1286.75

Support

1251.50-1252.50
1246-1245
1240.25-1239.50
1233.50-1232.25

My Outlook

Not much happened from yesterday as it was relatively quiet. For me that signals trouble for the buyers as we really need to get off to a good move soon. Without it we can see the sellers taking control and keep momentum on their side. Apart from that there isn't really anything worth noting at this point.

My Focus

Currently we are hanging around the 1251 area in the overnight market. If we open down here I would be looking for a move back to the 1256 area to have some weakness enter. I haven't marked 1256 as a s/r level but it was one I wanted to put in. It is too close to the other levels so have left it out but will keep a mental note of that area should we see any extremes occur near there.

I will keep my eye on the action as we hit the 1252 support area. I will see if there are any signs of life from the buyers down here or if the sellers exhaust themselves down there. Otherwise beneath 1252 it is the same as yesterday, the momentum is likely to swing back to the sellers.

1262 is going to be an important area for any continued buying. If we reach there and can't break through, the sellers will be able to gain the upper hand. Right now there is more sway to the selling side. I will be cautious with my long trades and monitor them carefully.