Dow Jones struggles at initial 13338 barrier
City Index December 17, 2012 3:10 PM
<p>The start of the month has seen some potential for a bullish December but currently the markets may have faced a resistance level where the […]</p>
The start of the month has seen some potential for a bullish December but currently the markets may have faced a resistance level where the stock indices may be facing a challenge. The recent trend which had been bearish has turned bullish on a momentum basis. Currently bullish signs are still present and opportunities for a higher move into December end should not be ruled out. But the indices will need to hold onto support levels as well as not see acceleration moves to the downside. On the Commodities front, Crude Oil has failed to take out the $100 resistance level and is currently at a key level. See key levels below:
FTSE 100 below 5900 target
On three occasions the FTSE 100 index attempted to break past the 5900 level. The index has recently managed to trade above this key resistance level but this week has seen a weaker start and also bringing the index below the important price level. For the FTSE 100 index to continue upwards it will need to hold above 5900 in order to target 6150. Typically December tends to be a bullish month and hence if we see a trend continuation the index could reach for the 6150 target. We have support levels at 5817 and also 5777 if the short term decline continues into this week.
Dow Jones struggles at 13338 level
The US Dow Jones index has found technical resistance at 13338 where the last the last three days has failed to climb above this key upside target. The trend had turned bullish eight trading days prior and indicated an upside move was likely. If the index trades lower this week it would need to remain above support levels of 13000 and 12900 respectively. The current move may just be a typical pullback but failing to hold support may indicate further weakness may be at hand. Clearing 13338 could lift the Dow Jones towards 13550 but on a short term basis we would need to see a break above the recent high.
Crude Oil testing support level
Right at the key price target of $100 we have seen Nymex Crude Oil struggle to clear the psychological level. More importantly the commodity has seen a trend reversal and with the current momentum indicated bearish factors in place the odds for lower prices may develop over the coming weeks. Right now the price of Oil will need to sustain $89.00 if there is a chance for a retest of $100 but price action indicates that Oil may continue lower and aim for the $80.80 level as a key target area. A move above $93.00 could potentially prevent the bearish move but remains to be seen.
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