Greater London, England -- (SBWire) -- 12/17/2010 -- Spread betting expert Sandy Jadeja, Chief Technical Analyst at http://www.cityindex.co.uk, looks at spread betting market activity for the week beginning 13th December:
“As expected the recent decline took the shape of a Bull Flag suggesting higher moves were on the cards. The need for stronger momentum is required if the rally is to sustain itself and continue moving North. Upside breaks above the recent highs look likely but will require more of a thrust rather than a gradual slow move. This would support the idea of a strong bullish continuation rather than a corrective pattern. December is generally a positive month and the 2nd month of the best three months of the year pattern. The current move is playing out nicely so far.
FTSE 100 clears momentum break …
After completing the short term reversal and finding support the UK index is back on track for upside gains. Currently the FTSE 100 has held above support at the 5550 level with a low at 5573. We note that the index is now back above its 20 day Moving Average and also cleared a downside momentum break above its bearish trend line. As long as momentum remains positive the upside targets for December could see the index reach for 6050 -6117. It is essential that the FTSE now holds 5770 as short term key pivots in order to maintain the bullish stance.
Dow Jones eyes on 11705 as target…
Similar to other global indices we are observing the typical end of year bullish momentum. The US Dow Jones index has regained its reign on the upside targets of 11451 and if cleared could see 11705 as its next main price objective. The concern is that the momentum indicator is still on a flat line rather than ascending slope. If momentum fails to pick up fairly quickly then the 11320 support level needs to be watched closely. A double top pattern at the 11451 level also needs to be cleared for the bulls to maintain its hold for a strong December finish.
December Gold close to a reversal...
Trading in a sideways mode the December Gold contract has shown some early warning signs of a bearish reversal at least for the short term. Weak momentum is pointing to a bearish start to this week and a confirmation break below $1350 could see the contract head lower towards $1246 unless we see the Metal clear $1424 quickly. Clearance above the recent high of $1424 could set the stage for the $1520 level although we may see a sluggish move higher rather than an impulsive type of move. Gold may also face a further consolidation if a breakout is not taken this week.
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