TRADE SETUP ALERT 22/07/2021

Opportunity before earnings

AMD has been trading within a well-defined rectangle for the past 12-months with the horizontal boundary acting as strong resistance at the 96.00 level. Currently, price has pulled back to the Daily 200 SMA near the centre of the trading range partly due to the wider market sell-off. Considering AMD is expected to report earnings on the 27th of July, this could potentially be a catalyst for another move higher. Strong support should be present at the Daily 100 SMA @ 82.00 with a stop level @ 79.00 a good fail-safe. In terms of a rally, a break above the Monthly pivot @ 89.00 could see the top of the range re-tested with a daily close above 99.50 confirming the breakout from the 12-month-long rectangle with the possible longer-term price target @ 121.00

GBPUSD: Big break below weekly support

USD strength has seen the pair break below major horizontal support as can be seen on the weekly chart with the next level of support @ 1.345 (also a key fib level). If this level fails a move lower to where the weekly 100 and 200 SMA’s converge at around 1.316 can be expected. Short from a pullback to the Monthly S1 pivot @ 1.365 will present an a great risk tot reward trade with a stop to be considered @ 1.371