Spread Betting News: Indices within turning point price zone…

Spread Betting News: Indices within turning point price zone

Sandy Jadeja, Chief Technical Analyst at City Index (http://www.cityindex.co.uk/), provides insight into the market activity that shaped spread betting and CFD trading on April 11th:

As expected the bullish momentum has helped to lift stock indices higher into a decision price zone. Although this should not be considered as a market top the possibility of a reversal does exist. A weekly key reversal after a new high would need to be observed in order to confirm that a turn may be at hand. The possibility of a trend continuation to higher highs into the second quarter is what many traders expect but momentum studies are looking a little overstretched and a pullback would be healthy if the bullish trend is to stay intact. Oil prices also moved right into the price targets as forecasted.

FTSE 100 within the 6050 6117 zone

Last week helped the FTSE 100 climb above 6101 and enter into the 6050 6117 price zone. It would be premature to say that a reversal is going to occur but instead if we develop a bearish pattern with a momentum reversal at current levels within the next week or two then a decline may be around the corner fairly soon. At present the 20 period Moving Average still looks bullish with a rising momentum index. Hence the need to stay with the trend above 6000 should be respected. A break below 6000 could take the index to the 5850 support

Dow Jones trades in a narrow range

The US Dow Jones has trades sideways but seems to be holding above 12300 with is a plus for the bulls. If we see a break below this area then lower support arrives at 12090. Momentum studies have turned lower and the index has also closed in with the 20 period Moving Average which may suggest the week ahead sees a drifting type of price action. The overall price target of 12545 still looks like the main objective before a key reversal takes place. But for this week the 12310 should be a focus for support.

Crude Oil continues higher towards $115

So far the bulls have not been disappointed with the performance of May Nymex Crude Oil. A steady march higher whilst holding onto the $97 key support level has seen the commodity reach into the price objective of $111 - $115 and if momentum continues to remain bullish then $124 may be on the cards. This week will need to see oil stay above $107 otherwise a pullback towards the $101 support zone may take place. Overall the daily and weekly trends remain bullish until we see a breakdown of lower highs and lower lows. The break above the momentum trend line also suggests higher prices are likely for the near-term.

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