Greater London, England -- (SBWire) -- 11/30/2010 -- Sandy Jadeja, Technical Analyst at spread betting provider City Index (http://www.cityindex.co.uk), delivers his market update for 22nd November:
"The expected selloff materialised for the indices as weak momentum took over bullish price action. Last week’s trading saw the bears take control and drive stock indices lower to test support levels. This week requires momentum to continue to the upside to test upside price targets but we may be facing a weak rally if the start of the week does not see an increase in strength to help lift the markets higher. As indices test their 20 day Moving Averages the concern for bullish strength can be questioned and lower prices cannot be ruled out just yet.
FTSE 100 maintains 5630 level …
Once again the FTSE 100 has dipped below its 20 day Moving Average and closed the week below the indicator. With a declining momentum indicator along with the recent divergence against price, the bulls will need to work hard this week to take the index higher. We would like to see the index get back above the 20 MA and see a lift in momentum to carry the index above 5786 to aim for the 6050 level. The 5630 level is an important support level which if broken may see the FTSE test lower prices at 5588 – 5491.
Dow Jones bearish signal confirmed…
The break of 11215 along with a bearish Parabolic SAR signal helped the bears take the Dow Jones lower. Our expectation of a test of 11020 was met as the index traded lower to reach 10978 and then saw the Dow trade back above the support level. The week ahead could see the Dow trade higher towards the resistance level of 11250 followed by a retest of 11451 again. However the 11271 – 11350 hurdles must be cleared to maintain the bullish stance. 11020 support also needs to be held otherwise trades lower towards 10872 may be on the cards
December Gold continues to decline...
Gold managed to fall further also breaching the $1350 support level. Although the $1310 lower level had not been reached the possibility still remains for declines this week unless a break above $1365 takes place. Resistance overhead comes in at $1387 - $1403 whilst support needs to be maintained at $1350 in order to avoid trading lower to see $1246 being tested. Momentum still remains weak and a quick reversal is required to avoid the short term bearish pullbacks for the week ahead. Intermediate term picture still appears bullish above $1320.”
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Spread Betting: Indices Back on Track for Possible Upside Targets
City Index’s financial spread betting experts have extensive experience of the financial markets to share. Here, Sandy Jadeja reports on 22nd November.