Bullish trend lead markets higher into overhead targets
City Index February 13, 2012 8:24 PM
<p>Last week the markets started on a weaker opening but had managed to gain positive ground towards the end of the week. This week we […]</p>
Last week the markets started on a weaker opening but had managed to gain positive ground towards the end of the week. This week we have seen the opposite where a stronger start to this week is looking to take the stock indices into higher grounds. If the bulls can hold onto gains by mid-week the markets may see a further continuation towards further key levels. What is interesting is that March appears to be a key time for the markets and yet the upside targets may be reached sooner rather than later. This would point to a stronger than expected trend and it would take a very sharp downturn to turn this trend around. See key levels below:
FTSE 100 could be reaching for 6000
The FTSE 100 spent much of last week trading in a sideways mode but eventually pushed higher. This week if the positive moment continues to lift the index the odds suggest that the 6000 level can be reached sooner and then increase the odds of even aiming for 62175 – 6250. We can see that the trend has remained intact since the break above 5469 and any pullbacks along the way could offer further buying opportunities. The 5820 should now remain a key support level unless of course we see a major trend reversal. Time reversals are still focused on March and April with an extension into June.
Dow Jones at a decision zone again
In line with other markets the US Dow Jones has also managed to stay on the bullish road. The uptrend is strong and there does not seem to be any signs of a trend reversal. However we are seeing the index at a Price Resistance Zone which may push the index lower into support if we see weakness this week. The range to keep a focus on will be 12891 – 12935 which if cleared may see the path open up to 13111. The downside support level is now at 12780 -12740. A break below may bring the index down to 12600 and possibly 12450 which remains a key level.
Gold holds above $1715 level
If Gold fails to clear the $1750 level very soon then we may see weakness drag the metal below the $1715 support level. Right now the pattern suggests that an ABCD type of correction may be forcing Gold to test lower levels of support. The trend is bullish as we have seen since the break above $1668 but there are some early warning signs that if momentum remains weak and support levels fail to hold then this commodity may have a trend reversal. It will be essential for Gold to try to hold support and then attempt further rallies to stay on track for $1880.
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