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 within crucial resistance zone
The FTSE 100 has seen a very strong rally throughout this week, bringing price into the 6024 resistance level that seemed likely to cap such upside momentum.
However, despite this bearish bias, we have not seen any signs to say that this market is topping off and thus a bearish reversal sign would be required to negate the bullish view that has dominated the week.
We are currently seeing a period of overnight consolidation and thus the breakout will be very clearly defined, with a closed hourly candle above 6033 or below 6000. The crucial hurdle that needs to be taken out for the medium-term picture to change is a break through 6128 which is the next major resistance point.
However, if that doesn’t happen, there is a good chance we could see sellers come back into the fold at these levels.