Financial spread betting expert Sandy Jadeja’s ‘The Week Ahead Report’ for 1st November 2010.

Greater London, England -- (SBWire) -- 11/05/2010 -- Sandy Jadeja, Technical Analyst, City Index (http://www.cityindex.co.uk) commented:

"A minor retreat in last week’s trading has seen the indices trading back within a consolidation range but concern for this week is required. Currently the markets have seen a strong move upwards from recent lows but technical indicators are failing to rally along with prices. The possibility for higher prices into November exists but we will need to see sustainable thrusts higher with breaks above the recent highs. Divergences with prices and technical indicators are common at these levels but a failure to see higher prices may cause concern for the bulls in the week ahead."

FTSE 100 needs to stay above 5660 …
With sights on 6050 as the next price target the FTSE 100 will need to stay above 5660 for this week. Last week’s price action saw a break below 5660 which may suggest a move to the 5517 support level could be possible. Friday’s close below the 20 day Moving Average is the first time we have seen this occurrence since August. If this week we can get above 5794 then the upside momentum may continue otherwise further pullbacks may be in store especially with a failure to hold above 5660.

Dow Jones attempts the 11250 level…
The first week of the month often brings volatility and November may be no exception. Almost reaching the April high of 11258 last week, the Dow Jones retreated slightly from the 11247 level. Another attempt is likely if the index can stay above the Parabolic level of 11000. Along with other indices the index has seen price divergence suggesting caution but if 11250 is cleared then 11325 may be the next upside target. Short term 11060 should be watched for any further clues to downside breaks for the bears.

December Gold breaks parabolic curve...
The break below $1350 saw a trade to the $1315 low but a close above $1350 suggests this may be a minor pullback. There are two scenarios for this week that may take place. A break above $1388 could lift Gold to new highs as long as the $1350 support is held otherwise we may see an ABC type correction if the $1315 level is broken to see the contract trade lower towards $1246. Momentum indicators have fallen in line with the pullback and the upside parabolic at $1375 needs to be taken out for a trend continuation to the upside. If momentum fails to reach new highs along with price a divergence set may take place.

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