Greater London, England -- (SBWIRE) -- 10/06/2010 -- Sandy Jadeja, Technical Analyist at spread betting and CFD trading provider City Index (http://www.cityindex.co.uk) commenting on 4th October:

“Another week goes by and although some positive price action has been on the books the reality is we are still consolidating at a key resistance level. The US markets have finally extended its rally into an extension pattern suggesting that both the UK and the USA may be at a critical juncture for this week. What will it take for a technical pullback? The key number is 65 points on both indices. If we see a drop of 65 points or more then a key pivot would be broken to suggest a move lower may be about to erupt.”

FTSE 100 struggling at key level…
Once again the 5610 resistance level has proven to be a barrier for the UK FTSE 100 index. There exists a possible thrust to the upside towards 5706 as we have not seen a decline in momentum just yet. Although the index is hugging the 20 day Moving Average a close below this indicator may suggest weakening prices and ideally a break of 5530 would be required to trigger a sell signal. Clearly a consolidation pattern is at hand and a break above or below is required to catch the next move be it bullish or bearish.

Dow Jones reaches 2nd base target…
Now that the Dow Jones has reached our pre-forecasted level of 10906 all eyes are on the key 11000 level. Positive aspects are that the index is still above the 20 day moving average and no parabolic breaks have been noted just yet. A move below 10640 is needed for bearish factors to come into play otherwise we cannot rule out higher prices for this week. As noted a move of 65 points to the downside would trigger a sell based on pivot studies. Momentum would also need to weaken significantly to confirm bearish factors.

Gold heads straight into price target...
Our forecast for the $1318 - $1330 is still possible now that the $1300 level has been sustained. There is some distance between a Parabolic trigger so turning bearish would be risky until we see a break below $1290. Momentum is clearly strong and still gaining strength supporting higher prices until further notice. If a decline in the indices commences then it’s possible that December Gold could remain on target for $1330 sooner rather than later. A pullback to $1220 may provide further opportunities for future rallies. The trend remains bullish and this is apparent on all time frames from short term to long term.

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