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 on the cusp
The FTSE is selling off once more this morning, with the price falling to 6252 support. This level is huge and a break and close below it could lead to significant losses. The fact that yesterday saw the price create a high equal to the Tuesday high means there were tentative signs that this market could be bottoming out. Thus another failed break below 6252 could provide a nice bounce and potential double bottom. However, ultimately, we will need to see either a break and close above 6330 or below 6252 for us to gain a clear direction in this market.
A closed intraday (four hour or one hour) candle above 6330 would look towards 6356, 6396 and 6429 levels. A close below 6252 would look towards 6174 and 6133.