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 at significant support level
The FTSE has once again pulled back, in a continuation of the consolidation that has dominated March so far. At present, the index is resting just above the 6128 level (29 January peak) and ascending trendline. As such, this is likely to be a pivotal area for the index today, where a closed hourly candle below 6100 would provide a bearish signal, with 6050, 6032 and 6000 the next support levels in view.
While a move below 6100 would provide a short-term bearish view, the 6032 level would need to be breached for expectations the weakness could continue. Alternately, should this 6100 level hold, we could see this provide a base once more for a push back to 6220 resistance.