4-Hour Analysis:
Big Picture: July continued to be a good month for price recovery. This recovery, however, was twice halted at the resistance levels of 24,550-24,890. Bulls failed to break through this level in order to launch another wave of upside. Furthermore, until and unless this level is regained, the upside remains limited. Furthermore, failure to breach 24,890 will increase pressure, exposing price towards lower supports levels before any further breakthrough attempts.
On the Upside strong rejection is observed off the 24,300 level once more. For the previous few weeks, this level has been limiting the gains. Multiple rejections of these levels have caused congestion in the 24,300-24,890 area. As a result, strength above this level is necessary to break through the congestion and begin another bullish phase. This will most certainly pave the way for 25,300, then 26,300, and finally towards 27,500-28,200 as upside targets.
On the Downside There are a number of modest supports between 21,300 and 21,150. However, these are not considered to be particularly solid supports. As a result, we now have significant support at 22,800-22,550. This level maintains a solid support, but due to consecutive rejections off 24,300, a further drop cannot be ruled out. If price breaches the 22,550 level, it is then expected to fall towards the 22,000-21,800 level as the next support region.
