16 July Tuesday View

Yesterday morning we saw a high of 31207 (USD 1294.27) early morning but later price tumbled down and now today 31000 (USD 1285.68) has been a resistance. Yesterday's low 30722 (USD 1274.15) was higher than the previous low and support at 30568 (USD 1267.77). Today a low of 30794 (USD 1277.14) is already been tested and it has been holding the price.

Looking at the H4 chart (16Jul_H4), in order for the price to make an upside move, it will have to clear off the 150 SMA, with all the fundamentals we've had for last couple of days, a break and hold above 31369 (USD 1300) level would see further upside gains which also happens now to be above the 150 SMA. In order to get the force to propel through, the price may retrace back to the trendline support as seen in the image. And fundamentally, Fed Chairman Mr. Bernanke's testimony before congress on tomorrow and Thursday, which investors are eyeing on at for guidance to whether QE tapering will start on September or December is expected to provide the required force for the movement.

On the other hand, if the trend line support breaks in H4 chart, the whole Cautiously Bullish Outlook should be reviewed again.

Trade Happy, Trade Safe :)