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 rallies towards wedge top
The FTSE has created a new lower low yesterday, providing us with some clues that this sell-off may not be over. Given the wider topping pattern, it is no wonder we saw another leg lower. However, with price forming a falling wedge pattern, there is a good chance we will see the ultimate breakout occur to the upside.
Price is currently enjoying a bounce from trendline support and thus we could see further gains in the short-term. That said, the directional bias will come upon seeing an hourly close either below the lower boundary of this pattern, or else above 6721.