In his ‘Week Ahead' report for 14th February, Sandy Jadeja of financial spread betting provider City Index (http://www.cityindex.co.uk/) takes a look at the events set to shape trading over the next 7 days.

"Although the indices have performed nicely over recent weeks the current development may be an early warning signal. Right now the FTSE 100 index seems to be creating a Double Top pattern which could potentially suggest that a top may be forming at current price levels. Oil prices have also dropped lower as expected after the recent surge higher which seems to be short lived. The opportunity for Bears to take control may be on the cards but further weakness must be demonstrated before confirming key reversals from current price levels.

FTSE 100 struggling at 6050 – 6117… After recently turning lower at the 6090 level the index is now back at the highs looking to clear the important 6117 level. The main low at 5824 remains a key pivot for the index and as long as the week ahead can maintain 5950 then the opportunity to steer toward higher prices still seem likely. Above 6117 we have 6256 – 6358 as the next price objective. However a break below 5950 may suggest that the 5824 level could be re-visited. Momentum indicators remain neutral whilst the index is back above the 20 day Moving Average for the short term.

Dow Jones reaches 12273… With the Dow Jones finally reaching the 12273 target and the index looking a little overstretched can we see a correction on the horizon? If the index breaks below 12150 then the odds of a correction increase. But if on the other hand the 12273 resistance level is cleared then the upside of 12544 – 73 could become a reality. So far the index has maintained its stance by staying above the 20 day Moving Average. But as noted previously momentum is still lagging with higher prices. More importantly the trend remains bullish until a clear reversal pattern has developed.

March Crude Oil Triple Top possible ... The break below $90.10 may have taken Crude prices lower back towards the $86.13 support level. If this area of support fails to hold then an expectation of lower prices towards $81.61 may be possible. For oil to reverse and head higher towards the $93.00 area we need to see a clearance above $88.11 but it is the momentum indicator revealing that weakness is still present and support lower rather than higher prices for the weeks ahead. The commodity is also back below its moving average supporting a bearish outlook."

Find out more about spread betting at http://www.cityindex.co.uk/spread-betting/.

For more on CFD trading, visit http://www.cityindex.co.uk/cfd-trading/.

Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.