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.
Open account
☰
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.
Open account
✖

FTSE 100 trading at resistance level

Article By: ,  Financial Analyst
November 27, 2012 4:40 AM

The recent downswing experienced with the stock indices has seen a counter trend rally back to the upside. However, can we be certain that the rally will extend? The nature of the markets is such that there are no certainties but at times the markets can offer subtle clues to provide a slight edge which may favour a directional move. Currently the UK FTSE 100 index had turned positive with a minor bullish trend but Monday’s price action has failed to lift the index above a key level and also suggests that the trend may be about to reverse if we do not see a follow through immediately. See key levels below:

FTSE 100 back at resistance level
Recently the FTSE 100 index had found support above 5580 and managed to thrust higher. On clearing 5700 the route to 5830 had opened up and last week also saw a trend reversal on the bullish side emerge. Friday had traded above Thursday’s high but this week Monday has seen the reappearance of a potential bearish setup. If today sees a break below yesterday’s low at 5773 then this could suggest a decline could commence and take the index back down to 5700 followed by 5580 as the main objective. A move above 5830 would negate the bearish view to see 5900 as an upside potential.

Dow Jones creates a reversal bar
As Tuesday’s trading session kicks off the index will need to trade above 13008 but more importantly above 13060 to move higher But the bears may just take control again as the current trend remains bearish on a momentum basis event though the last five trading sessions were to the upside. We may consider the current move as a retracement to the upside unless we see a higher low followed by a higher high. Failing to clear 13060 the Dow Jones may once again decline to test the 12360 level before finding a key support level to then rally into December ending the month on a high note.

Crude Oil holding support levels
For the last five weeks Crude Oil has managed to hold onto support at $89.00 and move towards $96.30 as the upside resistance level. The worrying aspect for the bulls is that the trend remains bearish on a momentum basis and rallies may face further selling pressure. Also the current attempt at pushing higher has appeared to be weak rather than strong indicating that we may not reach the $$96.30 target and instead trade below $89.00 to then continue falling towards $80.80 and possibly lower. If Oil does manage to clear $96.30 then higher levels come in at the key $100.00 level.

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