Dow Jones stalls at resistance level

Expecting a move higher towards the upside resistance targets has been achieved. Technically the markets still appear to be stuck within a range. However next week should prove interesting if we see further weakness develop. Right now the stock indices are creating a pivot high which suggests that if Monday continues to trade lower taking out today’s lows then the short term trend may turn bearish. We have not seen a bearish momentum reversal occur just yet but this would depend on how strong the reversal at the current resistance level becomes over the coming days. See key levels below:

FTSE 100 potential double top
Given the current pattern which has taken place at 5900 the FTSE 100 appears to be creating a bearish double top pattern. This indicates that the 5900 level is becoming a barrier for the index and it would need to climb above to tackle the 6000 level. Next week the index would need to break below 5865 to then test support at 5785. If a break does take place then we may also see the index weaken towards the 5700 target which could take place over a week or so. For upside continuation the index would need to move above 5900 and maintain the position for three days or more.

Dow Jones reverses at resistance level
13500 has proven to be a hurdle for the US Dow Jones index. Thursday saw an indecision day take place which suggested that the index may be uncomfortable at the current level. Today as the week comes to a close it appears as if traders may not want to take risks and collect on some of this week’s gains. Going into next week the index will need to move above 13500 to then move towards 13700. If the sharp move to the downside seen in today’s price action is not followed through on Monday then this could read as a standard pullback. Unless the index breaks 13420 it stands a chance to move higher.

Crude Oil heading into resistance target
This week has seen Crude Oil attempt to reach $96.30 but has fallen shy at $95.50 and may have another attempt next week. The commodity will need to remain above $92.60 if it has a chance of gaining strength to test the price target. However it is important to note that Crude Oil has remained in a bearish momentum phase since the last five weeks. The current move may be a consolidation before seeing lower prices. For a bullish move the commodity will need to move past $$96.30 to then test the $100 level which could prove to be a hurdle for the intermediate term.