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 showing bearish signs
The FTSE 100 is showing signs of weakness this morning, with the resurgence fading into lower highs and flatlining bottoms at 6209.
This support level is in the process of being broken and a close below 6209 would provide us with a bearish view for the day. For now, price has found support at a descending trendline, which forms the neckline of a head and shoulders formation.
However, should the FTSE manage to break through both trendline support and the 6197 level, then another big leg lower seems likely. Given the break through 6209, the bearish view clearly holds unless price closes back above 6228.
Support levels of note are 6197, 6185 and 6123.