Spread betting and CFD trading provider City Index supply a daily market update to inform traders of the important market movements. Today, Chief Technical Analyst Sandy Jadeja assesses the latest financial developments.

Greater London, England -- (SBWire) -- 03/11/2011 -- The recent decline in the UK and US indices certainly had the Bears in control but the real question is if there is still more upside or downside on the cards? There are several important factors to consider before deciding on which way the markets could be heading in the week ahead which depend on Pivot Breakouts. Oil prices are also back in the headlines after a sharp spike higher and could set the stage for further volatility with unrest in the Middle East causing concern. But a pullback may occur before we see another move higher towards the $120 level.

FTSE 100 targets remain 6050 – 6117…

The interesting aspect for the FTSE 100 is that we have seen a pullback towards the 20 Day Moving Average followed by a bounce higher on 2 occasions now. This coincides with a 38% Retracement level to help the index find technical support. Although the index may struggle at its key resistance level of 6117 the possibility to reach higher towards 6245 is still possible as long as we do not see a break of 5820. This Pivot Low needs to hold otherwise a trade lower towards 5602 could be the next support target.

Dow Jones possible for 12545…

The weekly momentum indicator has turned lower but this on its own is not enough to merit lower prices. If we see a break below 11983 then the odds suggest that another -600 points could be shaved off from current levels. But we note that the Parabolic Trend indicator remains intact and could help see the index reach towards 12545 in the near term. Although there is a conflict between the parabolic and the Momentum indicators, Price patterns which are more important still tracks higher highs and higher lows which still supports an uptrend until a break of 11983 occurs.

April Crude Oil spikes higher ...

The recent +18% spike in April Crude Oil helped clear past the $94.89 level. This also saw a break above the Parabolic indicator and now places Nymex Crude Oil in a Bullish stance. A pullback would be healthy for the bulls and it may be that a trading range between the $95.00 - $105.00 may possible unless upside momentum continues to lift the commodity higher. The $117 level could be on the cards if we can manage to stay above $95.00 and maintain a positive Parabolic curve for this week.

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