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 consolidates following rally
Yesterday saw the FTSE 100 extend higher following a bounce from the support zone of the range which has dominated the state of play for a month. Typically this range has seen upward price-action rally into the 6200-6220 zone, only to fall away once more.
Thus further upside is expected unless we see a closed hourly candle below 6164. Should that occur, it does not necessarily signal an end to this rally, but more a deeper retracement than the 38.2% pullback seen so far.
As such, an hourly close below 6164 would look towards 6158, 6153 and 6147 as important support levels. To the upside, further gains are expected, yet could be limited with trendline resistance alongside the key 6200-6220 zone up ahead.