CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Deciding factor reached for Stock indices and Gold

Article By: ,  Financial Analyst
  • This week has seen some choppy price action creating a difficult trading environment for trend traders. However intra-day traders have enjoyed the volatility whilst being able to capture short term swings within the larger fluctuations. Currently the stock indices have reached technical decision levels which should provide an opportunity to see either a trend continuation to the upside or a reversal to the downside going into next week. However the alternative scenario is that the indices continue choppy activity for a few weeks before seeing a further sharp reversal to take the markets lower again in line with the longer term trend. See key levels below:  

    FTSE 100 unsure at 5500 level

    For several days now the FTSE 100 index has attempted to get above the 5500 level without much success. If the index manages to break through then it will have to face the 5595 target to prove it has the strength to continue its short term bullish bias. The support level at 5250 has helped the bulls to provide a base to work from. Heading into next week the index will need to maintain a hold above 5380 to confirm the test of upper levels. Right now the index is at a minor decision level and will need to show its hand by either breaking above 5500 or below 5380 to lead the way for next week.

    FTSE 100 Daily

    Dow Jones tests 12680 level

    As expected the Dow Jones has now reached the 12680 level. If Friday sees a close above this target then the index is likely to reach 12835. Pattern traders will note that there is a minor bullish head and shoulder pattern developing that may assist in lifting the index higher. We also have a bullish blue bar setup also suggesting a move higher. But the weekly charts remain in a bearish trend and this move may just be a corrective bullish move to set the stage for further sell setups over the coming weeks. Next week should provide further volatility and offer good trading opportunities.

    Dow Jones Daily

     

    Gold looking to retest $1630

    We can see that Gold has tested the $1630 level and failed to get above this resistance level this week. Short term the metal has provided bullish blue bar setups. If the trend is to continue higher then Gold will need to clear past $1630 – $1660 by next week. Momentum needs to stay bullish otherwise the commodity may turn bearish again only to fall back down to the $1525 level. The $1560 short term support level must remain intact to lift prices higher. A failure to hold support would only help the bears to push the bulls aside and see the $1525 main support being tested again. Above $1660 we have $1725.

    Gold Daily

  • From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties.  These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content.  Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell.  You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure.  No representation or warranty is made, express or implied, that the materials on our website are complete or accurate.  We are not under any obligation to update any such material.

    As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website and any such liability is hereby expressly disclaimed.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024