Greater London, England -- (SBWIRE) -- 12/03/2010 -- Sandy Jadeja of spread betting and CFD trading provider City Index (http://www.cityindex.co.uk) takes a look at activity facing the financial markets during the week beginning 29th November:
“After hitting a wall of resistance in last week’s trading the indices pulled back in an orderly fashion. Although there were concerns with regards to the Euro zone and tension in Korea we have not seen an extended move to the downside. This would suggest that the recent decline may be a simple bull flag which is typical in an uptrend. But the concern is that with a rounding top pattern which may be in the initial stages the indices will need to very quickly pick up momentum to the upside and break above short term resistance levels to continue its march for higher levels into year end.
FTSE 100 below support levels …
As suggested previously a break below 5630 would open the doors for the index to test lower prices at 5588 - 5491. With a pivot low at 5573 the FTSE will need to climb above 5705 to ensure that the support of 5630 should hold. The momentum index is still pointing lower and with the FTSE below its 20 day Moving Average there is still the opportunity for bears to test the lower level of 5491. If this week can hold above 5705 along with a rising momentum indication then the recent decline should not cause concern for the bulls at least for the short term.
Dow Jones consolidates within a channel…
After declining from the 11451 high the Dow Jones index has formed a classic consolidation pattern. The real test this week will be for both the bulls and bears to see which way the market will break. On the downside the index will need to hold 10992 otherwise 10875 could be the next lower support. The bulls will need to carry the Dow above 11196 to re-test the 11451 level in order to aim for the upside target of 11705. The month end usually finds markets heading higher so this may help lift the indices higher this week.
December Gold forms head & shoulder...
With a minor bearish head and shoulder pattern in formation December Gold will need to quickly get above $1382. The Parabolic indicator is still in bearish mode and the Momentum index is also still weak. If weakness continues for this week then the downside target of $1246 may still be in sight for the bears. Trades below $1350 would confirm this scenario. A lift in momentum and a move above $1382 would help the price of Gold look forward to the $1520 level during the month of December. The possibility of a consolidation can also be considered as a state of play.”
You can find out more about spread betting at http://www.cityindex.co.uk.
Alternatively, take a look at City Index’s one point spreads on major indices such as the FTSE and Wall Street at http://www.cityindex.co.uk/1point-spreads/.
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, CFDs and, in the UK, financial spread bets.
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 mobile spread betting and CFD trading tools with transparent pricing, competitive spreads, and a high standard of customer service and support.
Spread betting and CFD trading are leveraged products which can result in losses greater than your initial investment. These products may not be suitable for all investors and you should ensure you fully understand the risks involved.