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 rally unlikely to last
The index is rising this morning, following on from another leg lower after a largely hawkish set of Fed minutes yesterday. Despite early gains, we are clearly trending lower over the past 48 hours, following a rally into range resistance around 6220. As such, we are looking for a return to the lower end of the range, around 6060.
With that in mind, any rally into the 61.8% or 76.4% Fibonacci retracements are likely to be sold into, for a move lower. Key support levels are 6101, 6095 and 6060. A closed hourly candle above 6136 would negate this bearish short-term view.