Spread Betting Update: FTSE 100 eases back after recent gains...

April 5, 2011 - PRLog -- Sandy Jadeja, Chief Technical Analyst at City Index (http://www.cityindex.co.uk/), provides insight into the market activity that shaped spread betting and CFD trading on April 5th:

The FTSE 100 index has started the day dipping below the 6000 level. The recent high of 6101 remains to be tested and looks likely to be cleared for the index to head towards 6117. Today may see the index drop lower towards 5972 for support. Below this level we have 5922 – 5900. The intermediate term chart still sports a bullish outlook. Meanwhile the US Dow Jones futures indicate a lower opening. The cash index could see a decline towards 12,369 which if broken then a sharp move may see the Dow stabilize at 12,297.
COMMODITIES

Crude Oil for May broke above the recent $108.25 high posting a new high at $108.78 but may see a short term hesitation pattern take place unless we see a strong close above $109.00 If a decline takes the commodity lower then $106.39 - $105.69 could help Oil find technical support.  Gold June contract seems to be consolidating between $1,450 - $1,411.50 and will need a breakout from this channel to dictate the next move. It is likely that the $1,500 is reached with further upside potential as long as the contract holds above $1,382 for the intermediate term.
CURRENCIES

GBP/USD has risen sharply taking the currency above 1.6200 after a consolidation break above 1.6176 and although the short term chart shows a momentum spike the daily charts sport further upside moves. Cable will need to maintain the 1.6176 level to target 1.6300 whilst the EUR/CHF has seen a decline taking the currency below 1.3100 and may find itself trading in a range of 1.3103 – 1.3050 for today’s session.

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As a group, City Index transacts in excess of 1.5 million trades every month in over 50 countries worldwide. We provide a wide range of instruments including forex, CFD trading and spread betting. For more information, visit http://www.cityindex.co.uk/.