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 retraces following breakout
The FTSE 100 is turning lower this morning, following on from the strong bullish breakout seen following Friday’s payrolls number. The fact that price broke the swing highs of 6852 and 6885 provides us with a clear positive outlook and as such this current move lower represents a likely break before another leg higher.
Watch out for key support levels of 6885, 6875 and 6852 as potential areas for another push higher. Shorter term charts can be useful for finding reversal patterns to indicate as much.
We would need to see an hourly close below 6809 to bring this bullish outlook into question.