Game Plan 19/07/12

DJ Eurostoxx50 Sept Fut:

• Resistance Area 2295/2305

It's a dangerous but gorgeous level, if it holds you have a strong resistance area and you can sit and wait for the trade to evolve, but you can be pretty sure that if the market will break on the upside you are deadly wrong and if you trade against the move you can be killed because bulls will take your money.

• Support Area 2275/2269

If the Resistance area is not broken in the first-hour breakout then It can work as a temporary support to let the bulls breath a bit, before attempting for a new upside breakout. The Support Area breakout will drive  the market to the 34 level after a break at 51.

A temporary support can be found around the 1.2240$ mark.The Eur/$ Future has a downward sloping Line of Least Resistance and it's trying to break the 1.2300$/1.2320$ area. In the past sessions the area held.

I have to say that I don't like the move in the FESB, Stoxx Banks, it's trading at June 29th level with the market much  higher, a divergence that does not support long at the moment.

Originally posted at www.77sigmatrading.com