Spread Betting and CFD Trading Update: Markets may now be at a decision point?
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Spread Betting and CFD Trading Update: Markets may now be at a decision point…
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Home Page > Business > International Business > Spread Betting and CFD Trading Update: Markets may now be at a decision point…
Spread Betting and CFD Trading Update: Markets may now be at a decision point…
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Posted: Jan 10, 2011 |
Spread betting expert Sandy Jadeja of City Index casts his eye over the week ahead in trading, taking a look at FTSE 100, Dow Jones and February Gold on 10th January.
Sandy Jadeja, Chief Technical Analyst, City Index commented:
“With the first week of trading ending on a positive note the markets appear to be in a position where the bulls appear to be able to lift the indices to higher highs. However caution is observed as the indices are now also at key resistance levels where a turn is very possible. The overall trend has of course been bullish but pullbacks are normal and expected given the recent gains achieved during 2010. Last week’s close has created a pivot high which may support a short term turn at current levels. The bulls will need to quickly revert this if we are to see higher prices this week.
FTSE 100 trading at resistance band…
We noted previously that the upside target of 6050 – 6117 would be likely as long as the index maintained the 5900 handle. With a pivot high at 6090 and combined with a momentum turn it appears that a pullback may now be on the cards. So far the index has maintained a position above its 20 Day Moving Average which may provide some support. If we see a break below 5970 then chances are the index may look towards lower support at 5872 – 5804. Clearance above 6090 could help lift the FTSE towards 6117 – 6254.
Dow Jones reaches 11705 price objective…
The US Dow Jones maintained its upward momentum and finally reached the 11705 target with a high in at 11742. This week will be interesting to see if the index reverses for a short term correction or continue higher. A break below 11590 would suggest a move lower towards 11432 – 11336 is likely and that the bears may have control for now. Meanwhile the bulls will be looking to take out 11774 to reach towards the all important 12000 level but barriers at 11800 – 11854 will need to be overcome first. Momentum has turned weaker so upside targets may prove difficult.
February Gold favouring the 00 level…
It appears that the Three Drives Pattern may have proven difficult for February Gold to aim for the 00 level. Currently the metal has dropped lower supported by a Parabolic break and also breaching the 00 support level. If prices continue lower then 30 – 98 is where the next key support levels are looking likely. Overall a larger degree consolidation pattern looks like it is now developing calling for sideways price action in the weeks to come. The recent 32 level will need clearance to see 00 as a price objective for the bulls.”
You can help to keep your spread betting skills sharp with a free spread betting seminar at City Index. Visit http://www.cityindex.co.uk/learn-to-trade/seminars.aspx for details.
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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, contracts for difference and, in the UK, spread betting.
We constantly look to widen the range of assets we offer, improve the performance of our spread betting and CFD trading 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.
Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
For more information, visit http://www.cityindex.co.uk/.
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