Dow Jones reaches upside price target
City Index January 16, 2013 2:40 PM
<p>The Dow Jones index has now reached the upside target of 13550 as highlighted from previous reports. Does this mean we are facing a major […]</p>
The Dow Jones index has now reached the upside target of 13550 as highlighted from previous reports. Does this mean we are facing a major reversal here? Much depends on how the index reacts at this key price juncture. If we take the underlying trend which has recently turned bullish then the index should technically ignore the barrier and move past to reach towards higher targets. If the index does on the other hand respect resistance then we could be facing a correction into next week. The main aspect to watch for would be a break below this weeks low. See key levels below:
FTSE 100 falls shy at key level
As the FTSE 100 index closed in on the 6150 price target the index has fallen shy of just 16 points. There is still the opportunity of reaching the objective and of course clearing past this level. But right now the index over the past two sessions has shown that we may be in for a correction at current levels. Breaking below 6100 which is what the index has done today suggests that we could follow the index lower in the coming days and likely into next week. For the FTSE 100 to negate the bearish aspect we would need to see a move above 6150 to reach for 6200 followed by 6300 but failing this move we could see 6000 as support.
Dow Jones at a decision point
Now the Dow Jones is at the desired price level we could look for technical clues to indicate what the next play of action could be. Currently the index is trading below the 13550 level by just six points. But this would be acceptable from a text book perspective. Currently the index could move beyond the 13550 level but if we see a trade below 13440 take place then this could be an early warning to suggest that a corrective move could be around the corner. The bullish trend should be respected and the correction may even lead to new highs but for now a step by step process would be a better consideration.
Crude Oil unable to push higher
This week has not been a typical trend continuation for Nymex Crude Oil. So far the commodity has failed to move above last weeks high and is currently trading at the mid week support level. It would be important for Crude Oil to not trade below $93.70 to continue its bullish stance. If we fail to see any significant move higher sooner rather than later the commodity stands the risk of going into consolidation mode. Right now the bullish trend which has occurred over the last two weeks will need to move upwards quickly to reach for the $100.00 target and beyond to $112.00 otherwise we may just see $89.00 again.
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