Dow Jones holds onto the bullish target
City Index October 5, 2012 2:20 PM
<p>October has started with a bullish tone and lifted the stock indices higher for the first week of the month. Although the markets have edged […]</p>
October has started with a bullish tone and lifted the stock indices higher for the first week of the month. Although the markets have edged higher the importance is to see wide range days to the upside which we have not seen at current levels. From a momentum perspective the move over this last week has lifted the indices back into the resistance zone. In order to move higher next week will need to see further strength and conviction from buyers to take the indices above the key zones. Sudden declines should not be ruled out as the indices remain at resistance levels. See key levels below:
FTSE 100 sees potential bearish pattern
Unlike the US Dow Jones index the FTSE 100 seems to be holding back from attaining new heights. It has made some gains for this last week but remains below the low of September highs. The 5830 level has certainly been a level of importance for the index has it has flirted with resistance area in August before it managed to get to the 5900 target. Right now the index would need to sustain a close above 5830 on a monthly basis. If this is retained then the 5900 to the 6000 level would become the next objective. For next week the FTSE 100 would need to remain above 5780.
Dow Jones trades back above key level
We have seen the Dow Jones index manage to hold onto 13338 which as noted previously should provide support. This had been a point of resistance during August but has since been cleared to lift the index to 13550. At present this is holding the index from moving further but if momentum remains positive and the index holds above on a closing basis then the 13700 target could be in sight for this month. This index appears to have strength and the higher levels should not pose a problem but it will need to remain above the short term lower support at 13420.
Gold regains strength again above $1,770
The last two weeks has seen gold remain uncertain at the $1,770 level. It did manage to create a false break last week by taking out the previous weeks low. This suggested that the commodity was set to retrace its recent move. Instead it has remained firm and so far cleared the recent high. If we see gold continue to perform with positive momentum then the objective of $1,840 could be achieved by the end of this month. It will need to stay above $1,680 for now to prove that it has legs to follow through to the upside. The bullish trend remains intact as long as gold remains above$1,609 and more importantly $1,550.
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