FTSE 100 maintains a grip on 5900

<p>The Santa Claus rally has seen the UK and US stock indices pull back during a week of thin volume. Traders are preparing for the […]</p>

The Santa Claus rally has seen the UK and US stock indices pull back during a week of thin volume. Traders are preparing for the festive holidays and some say that until the Fiscal Cliff is out of the way, it may be prudent to sit on the side before establishing large positions. However some short term traders are still seeking intraday moves to capture smaller moves and with a few more days ahead before closing out 2012, there could still be some opportunities to see a move above the key resistance levels. Whilst the overall trend remains bullish, December could continue to push higher despite the pullback. See key levels below:

FTSE 100 seeking a break above 6000
Last week the FTSE 100 had attempted to break above the year high of 5989 but failed by only reaching 5977. If this week the index can maintain a positive stance, then a second attempt to clear the 5989 is likely. Once cleared the FTSE 100 will need to maintain the 6000 key level to then reach for 6150 where we may then see a significant barrier that could push the index back lower. For now the index will need to hold 5890 otherwise a pullback could see the index fall towards 5900 and may also take the index into a bearish state at least for the short term. Preferably the index sees a move above 5977 for now.


Dow Jones fails again at 13338
There was not much joy for the bulls in last week’s trading session as the US Dow Jones index failed to move above its resistance barrier at 13338. This week the index will really need to prove it can carry the current Bullish momentum through by first moving above 13338 to then tackle the 13550 level. But if we see a failure at resistance then traders may want to observe support at 13000 where a further attempt may take place to tackle upper levels. But failing to hold 13000 we have lower support at 12900. As long as momentum remains positive the support levels could pose as potential bullish opportunities.


Crude Oil nervous at $89.00
So far the price of Oil has managed to hold at $89.00 which is clearly a key support level. But as the commodity remains bearish from a technical perspective the odds suggest that a break below this support level may drag prices lower towards $84.00 and more importantly the $80.80 level over the coming weeks. This week Nymex Crude Oil will need to move above last week’s high of $92.31 to avoid testing the $89.00 level. If cleared then we could see $96.00 followed by a re-test of the $100.00 where Oil failed to overcome and of course remains a key psychological level.


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