Greater London, England -- (SBWire) -- 01/07/2011 -- Financial spread betting and CFD trading expert Sandy Jadeja of City Index (http://www.cityindex.co.uk), looks at what’s in store for the markets at the start of the New Year:

With 2010 out of the way and 2011 already here, what’s in store for the markets as we start the New Year? Historically every down January since 1950 had been followed by either a flat or negative year. If the markets fell than this was by an average of -13% but this can also be considered a good buying opportunity. This does not mean that 2011 will be a down year but rather a statistic that could offer a trading edge if the markets do follow suit. So far the year has seen a positive start and we should also observe how the 1st five days trade as this could also add further clues to 2011.

FTSE 100 on target for higher prices …

If we see a negative close after the 1st five days of trading then statistics favour a negative month which could then further lead into bearish moves ahead. Currently the FTSE 100 index needs to maintain the 5900 handle in order to stay on its positive trajectory for the 6050 – 6117 price zones. Once reached, technical traders will be looking to see if we can break through or reverse for a possible -6% correction. The recent drop in momentum has not triggered any major concerns just yet but further episodes of sharp drops will need to be respected and especially if a divergence sets up at the resistance levels.

Dow Jones eyes on 11705…

Having reached our initial target of 11594 the Dow Jones looks keen to target the 11705 level with sights on the all important 12,000 level. However momentum has only seen a steady rise but that can be discounted with the thin volume over the seasonal period. This week the index will need to hold above 11530 and look towards 11705. A reversal below 11530 may have a bearish impact but this seems unlikely just yet. The index also remains above its 20 period Moving Average which supports a bullish bias for now.

February Gold favouring the $1500 level ...

After reversing the recent bearish move Gold has reversed higher again giving the bulls an upper hand. If positive momentum continues then we are probably looking towards the key $1500 level but the recent three drives pattern should also be observed. A break above the three highs could negate a short term bearish view and help lift gold prices even higher. On a weekly chart the current sideways pattern sports a bullish continuation pattern supporting higher prices into January. As long as the February contract holds $1400 the bulls are likely to hold the reins for now.

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