Greater London, England -- (SBWIRE) -- 03/14/2011 -- Financial spread betting and CFD trading expert Sandy Jadeja of City Index (http://www.cityindex.co.uk/) constantly analyses the financial markets to determine the probability of where markets will turn next. See his “Week Ahead” report for 7th March here.

“The recent market activity has caused confusion for many traders. We have experienced a choppy move both to the upside and downside causing confusion for Bulls and Bears alike. So which way are the markets heading and what is the direction of the underlying trend? Will Crude Oil prices continue to rally or is the current move a reactive spike? The week ahead should provide some further clues in terms of direction for the intermediate term for both indices and oil as we are yet again at decision levels in the markets.

FTSE 100 retreats back from 6117 level…
We notice on the FTSE 100 Weekly Chart that there seems to be a classic ABCD pattern developing. This would suggest that at its resistance levels of 6050-6117 a reversal “Should” take place. However the actual trend combined with Momentum is still in a Bullish mode. Until we see a change in Momentum with bearish factors weighing the index down the option to see higher prices towards 6245 may still be a viable option. This week however the index will need to hold above 5850 in order to maintain this view. A break below 5850 could see the index fall lower towards the 5500 area.

Dow Jones forms Bearish candle pattern…
The Weekly chart of the Dow Jones sees a Bearish Engulfing pattern formation along with a Spinning Top. This would suggest uncertainty with a Bearish bias. However here to the index still has a stronger bullish momentum aspect and is holding the index higher with a possible reach towards 12545. For the coming week the index needs to maintain a hold above 11979 in order to tackle higher prices. A pullback is due and is probably on the near term horizon but until we see a price action breakdown with confirmed reversals the trend remains bullish.

April Crude Oil looking Bullish ...
Closing in on the $105 level as previously noted the April contract of Crude Oil is clearly heading upwards and likely to reach towards the $117 level. For the moment the Daily chart would prefer to see the commodity stay above $99 to sustain the bullish view otherwise we could see oil dip back towards the $94 - $85 level for support. This is clearly a channel breakout and is quite often followed by a re-test of the channel highs. But given the tension in the Middle East, extreme movements should not be ruled out and of course volatility is probably going to include choppy days ahead for Nymex Crude Oil.”

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