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 bounce hits Fibonacci resistance
Yesterday’s FTSE rebound failed to muster much more than a whimper, with a shallow retracement to the 38.2% Fibonacci level (6210) leading to further losses. The key to another leg lower is a closed hourly candle below yesterday’s low of 6158.5, which would look towards 6107 and 6060 which are hugely important support levels.
Alternately, a more bullish view would only come about through a closed hourly candle above 6210. This would look towards 6237 as the next resistance.
However, the bearish trend remains the preferred option for the short-term.