This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
FTSE dips should be bought
Although the index has dropped back from the highs of yesterday’s session, it remains above the 14/15 April highs around 6375. If the index can hold these then another push on through to fresh highs for the year and the 6440 level looks possible.
Dips should continue to be bought throughout April and May, as the usual seasonality effects kick in. Bears are unlikely to get much traction unless they can get the price back below 6320. Even then, if the dip does not move below Monday’s lows then it remains within the sequence of higher highs/higher lows which characterise an uptrend.