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 100 could see 6380
Yesterday’s high water mark came around 6450, with the index gradually moving lower following this. The 6380 level is key to watch, having acted as support on 22 October and before that as resistance on 21 October.
A break through here would target 6300 itself, and beyond that 6250. As things stand the 100-day SMA at 6439 is the area to watch for any upside breakout, but it looks increasingly likely that bullish momentum is on the wane.
Any extended period below 6400 is likely to result in extended declines.