The inability of this market to close back above the 1192/94 area will continue the downward pressure on the 1170/68 support zone adding to the scenario of at least a near term top on the daily chart. But over the intermediate term a close above the 1102 area remains key to stabilizing prices on the daily charts. That type of closing strength should find resistance at 1114/16 but only by closing above the 1112 can the bulls regain the upper hand to challenge the 1124/28 weekly resistance and potentially the higher high at 1129.50.
Support moves to 1175/70 but closing below the 1070 low opens the way to 1068/65 and then the 1051 through 1035 area into September. Overall this market is in a wide trading range and we will look to trade it accordingly.
Strategy- Short at 1182/86, stop 1193 target 1168 or just cover in the 117274 area and go flat till Monday.
