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 turning from Fibonacci resistance
The FTSE 100 looks to be turning from the key 76.4% resistance level this morning. Clearly we have seen a turn of fortunes, with last week’s rally turning into negativity. However, there is no sign that this is a complete reversal rather than a retracement.
That being said, it makes more sense to be bearish for another move back below 6430 than a break through 6581. Should we see an hourly close above 6431 then this would signify a shift back to the bullish short-term outlook of last week.