London, England -- (SBWire) -- 03/21/2011 -- Sandy Jadeja, Chief Technical Analyst of City Index (http://www.cityindex.co.uk/), shares his http://www.cityindex.co.uk/spread-betting/”">spread betting and CFD trading insights for week beginning of 14th March, including a fade-out for the bullish aspect of higher prices.
"The bullish aspect of higher prices is starting to fade. Recently the markets looked set to trade higher but last week’s price action has created short term reversal patterns on the weekly charts. Markets are now approaching short term support levels which may offer opportunities for the bulls to pick up some bargains but the risk of further downside still exists. Meanwhile Oil prices have eased off slightly but the breakout to the upside looks set to create further sharp moves and these are likely to be more bullish rather than bearish. Volatility looks like it is here to stay for now."
FTSE 100 still struggles at a key level…
With the FTSE 100 index closing below its 20 day Moving Average the index looks set to tackle the 5683 level for support. Already the index has flirted with the 5872 level and if the index does not edge higher from here then it is likely to continue lower. Currently the FTSE would need to get back above the 20 MA to head back above the 6101 high. Also the index still appears to be stuck in a sideways range until a clear breakout takes place. Therefore choppy price action is expected for the week ahead with a range of 6101 – 5872 as the bullish and bearish boundaries.
Dow Jones momentum reversal…
The US Dow Jones Index is clearly trading in a channel. However the momentum indicator did provide early warning signals as previously outlined for a move to the downside. The initial price targets of 11980 has been met and if further declines take place then the next support level of 11650 is possible. The weekly chart has also seen a bearish candle pattern along with a Parabolic break supporting lower prices. This week the index will need to climb above 12300 to get back into a short term bullish mode. Until then bearish factors could put pressure on the Dow.
April Crude could reach $ $94.63...
Having tested the $99 level Crude Oil appears to be in a short term pullback stage after recent gains. The worrying aspect is that it is close to its Parabolic level and a break below the indicator would suggest that the commodity may test lower prices. If weakness continues in Monday’s session then the nearest support levels are coming in at $94.63 - $91.26 which also coincides with the upper channel breakout area. The intermediate term chart suggests that oil prices may be back on track for higher prices in the weeks ahead. This remains to be seen once support has been found.”
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