Once again the FTSE 100 is at a Major resistance level where it has had limited success since September. The 5900 resistance barrier has prevented the index from moving higher and once again we see a fourth attempt to break past this key level. A failure to move above could see a sharp sell off from this level. But if successful then the index may be looking to reach the 6000 level followed by 6150 as the main objective. The US Dow Jones has still not shown signs of a bullish momentum reversal just yet and we also note that Nymex Crude Oil has also stabilised at support and attempting to move higher. See key levels below:
FTSE 100 must climb above 5900
Traders who will have noticed the Triple Top Pattern that developed with the FTSE 100 index should have capitalised on the recent decline after the clear signal. Currently the index is seeking to break past this Major barrier and it will need to climb above this wall in order to continue its recent Bullish Momentum Reversal. As long as the index holds support at 5755 and manages to push above this week the odds suggest a trend continuation higher is likely. But of course a failure could turn nasty and see an immediate retreat if the Bulls fail to hold onto strength this week.
Dow Jones facing 13060 resistance
Similar to the UK FTSE 100 index the US Dow Jones is also at a resistance level. It too will need to move past this level in order to edge higher this week. But unlike the FTSE 100, this index has yet to turn Bullish on a momentum basis. Currently it still registers as a bearish pullback unless we see a strong thrust higher or a series of higher closes this week. From a pattern perspective the index appears to be creating a standard retracement to the upside unless we see a series of higher highs. Failing to do so may only further create a bearish situation for the Dow Jones and then see a move towards 12360.
Crude Oil holds onto $89.00
An uneventful week saw Crude Oil move slightly higher but failing to have significant strength. The commodity remains bearish from a Momentum perspective but if it can hold onto the $89.00 level for the coming week ahead then we may see further signs of strength turn into a Bullish phase. But it will be important to stay above $89.00 otherwise the lower target of $80.80 may come into play and see the commodity form a Double Bottom Pattern at the lower support level. A clearance of $96.30 is required for Oil to test the $100.00 target.