FTSE 100 achieves target at 6150
City Index January 18, 2013 8:40 PM
<p>A solid gain for the FTSE 100 has brought the index to its target at 6150. But some traders are questioning if this is going […]</p>
A solid gain for the FTSE 100 has brought the index to its target at 6150. But some traders are questioning if this is going to lead to a retracement from the current level or see further gains into next week. The US Dow Jones has also reached its target of 13550 and has so far managed to hold steady. Whilst both indices are now in bullish mode the opportunity to a correction is increasing unless we see a very strong move above the current levels next week. Crude Oil has also followed on from the recent strength to lift the commodity higher and appears to be set to reach its target of $100.00. See key levels below:
FTSE 100 may push higher to 6200
Now that the FTSE 100 is at its price objective the index may continue to enjoy a move higher into next week providing momentum does not reverse. Currently. The short term support that the index will need to hold above comes in at 6075 and as long as this is not breached next week then the upper levels of 6200 – 6250 remains the broad price barrier. It would not be out of the question to see a pullback before moving higher and ultimately reaching for 6300 into the next month. Moving below 6075 could pull the index lower to 5900 as a support level.
Dow Jones holding above 13550
Finally the US Dow Jones has made contact with the 13550 target after recently turning bullish. However, even though the index remains strong as seen by the thrust from 12900 we are starting to see divergence from technical indicators. This suggests that from current levels we may not be far from seeing a corrective move lower. This is by no means a major reversal indication unless of course we see a completer “trend” reversal but rather seeing a typical pullback which could be healthy. 13440 is the lower level to watch which would indicate a correction is starting.
Crude Oil moving towards $100.00
In line with the recent bullish momentum the price of Crude Oil has shown strength again this week. The minor pullbacks provided opportunities to jump on board for the move towards the $100.00 level. The weekly chart demonstrates that the price is favouring the bullish side for now and the $89.00 level should be a major support level for the weeks ahead. A longer degree projection indicates that once the $100.00 level has been cleared we may then be on route for the $112.00 target and as long as momentum remains bullish then higher prices are probable until March.