Greater London, England -- (SBWire) -- 03/08/2011 -- Chief Technical Analyst Sandy Jadeja of City Index (http://www.cityindex.co.uk/) shares his market insights for 24th February, including indications of positive momentum for oil.

“Volatility for a trader can be a blessing or curse depending on which side of the move a trader is established in. The recent spike in Crude Oil had certainly caused distress for all Short positions as Oil spiked up +14.82% over the last five trading days. Since the low of $87.09 on Nymex April Crude Oil, the commodity has reached a Technical Resistance level which may push the contract back lower over the next few days. $99.70 - $99.54 is a 1.618% Extension taken from the January 31st High of $94.89 and the Low of $87.09 and this area often provides a technical hurdle for markets.

If we take the trend of oil as into consideration, then the recent thrust higher had already been a blessing for traders who have been on the Long side of the market. A look at the Daily chart shows that four days prior to the spike, momentum had already turned positive. A break above $95.47 indicated that a move higher was likely as long as $89.77 was not violated.

However, the hourly chart showed that on February 17th momentum had turned positive indicating buyers coming into the market and once crude had moved above $88.10 the potential for upside moves had increased. If Crude continues higher then we could be looking at $106.62 as the next target. For the short term the contract will need to hold $89.70 and $93.54 - $92.02 as key support levels.”

Learn to read market movements with charting, technical analysis and free spread betting seminars from City Index. Visit http://www.cityindex.co.uk/ for more details.

Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.

About City Index
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.

As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, CFD trading and, in the UK, financial spread betting.

We constantly look to widen the range of assets we offer, improve the performance of our platforms and expand the range of services we provide. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer service and support. Visit http://www.cityindex.co.uk/ for more information.