UK & EU Market Commentary: Market Retreat At Resistance Levels Causing Concern

London, United Kingdom (PressExposure) October 18, 2011 -- Sandy Jadeja, Chief Technical Analyst, at City Index (, provides insight into the market activity that shaped spread betting and CFD trading on 18th October 2011:

"After closing lower in Monday's trading session, the markets have yet again shown weakness across global indices.

In the UK, the FTSE 100 has now traded 1.30% lower and looks set to continue its weakness into the US session. What is important is that the index has yet again failed to hold above its key resistance level of 5445. This level has certainly proven to be a tough barrier and generally if a market fails at four attempts then this could lead to waterfall declines. This is not to say that the FTSE will take this course of action but if the 5445 level is not cleared soon then the bears are likely to regain and hold control for weeks to come.

The US Dow Jones has also failed to hold above 11472 and closing Monday's session at 11397 indicates that the Dow is now seeking to head lower towards 11325-11275 as a support level. Although the short term trend on daily charts remains choppy it is the weekly charts which are still weak and not providing any bullish signals as yet. Until the index has cleared resistance the odds for further weakness cannot be ruled out.

Nymex crude oil prices have also dropped back a little today and with minor losses the commodity may still seek to challenge $91 as long as the $87 level does not prove to be too much of a hurdle. More importantly oil will need to hold above $81 and $77 which, if violated, could set the commodity back for much lower prices this week.

GBP/USD is looking towards 1.5565 if the currency pair continues to trade lower. The pair will need to get above 1.5850 in order to regain positive momentum. This is looking unlikely as the currency pair is pulling back after positive gains in last week's trading sessions."

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Press Release Submitted On: October 18, 2011 at 8:21 am
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