London, England -- (SBWire) -- 01/26/2011 -- Financial spread betting expert Sandy Jadeja of City Index (http://www.cityindex.co.uk/) takes a look at the trading week ahead on 25th January, including news around the Dow Jones and the FTSE 100.

"As the US Dow Jones continues higher the UK FTSE 100 has stalled right into its resistance zone. There is still room for both indices to edge higher but as noted previously there is an Extension pattern in play that suggests caution may be required. Although the overall trend has been and is still technically bullish there does seems to be signs of weakness within this up move. Rather than seeing wide range bars on the upside we note that generally the move has been accompanied with narrow range bars which is historically followed by an increase in volatility. Therefore caution is observed."

FTSE 100 unable to clear 6050 – 6117…

As expected the FTSE 100 fell towards our target of 5872. Currently the index is now below the 20 day Moving Average and since the rally in the US indices posting new highs the UK index has failed to break above the 6090 high. Also a falling momentum indicator is supporting weakness so there could be lower prices in store for the week ahead. If we see 5950 taken out then this could potentially trigger a move to see 5855 being tested or even lower at 5737. The bulls will need to take the index above 6090 to head towards 6250.

Dow Jones marches towards key 12000…

Since the Dow broke above 11794 this helped lift the index higher towards the 12000 level. With rising momentum and a healthy maintenance above the 20 day Moving Average the target for 12000 and higher remains a possibility that should not be ignored. Unlike the UK index the US index appears stronger but for how much longer remains to be seen. It is likely that both indices will soon be back in line in terms of overall direction but right now one is leading where the other is failing. The Dow needs to stay above 11744 to maintain its bullish stance for now.

February Gold remains under pressure ...

February Gold reached the $1330 level and may find support here if a reversal takes place quickly. A failure to hold this level could see lower prices towards $1297. There is a longer term consolidation still in place if Gold can revert to its recent bearish play. But if sellers come in with conviction then the metal could fall as low as $1250 per ounce. To trade back towards the $1500 level we would require a break above $1370 which could see an initial barrier between $1392 - $1432 along the way. The metal will also need to regain positive momentum to help support higher prices for the near term.

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