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 100 rallies on back of Brexit polls
Friday’s rally has taken on a new lease of life, with the FTSE 100 firmly back above 6100. It is possible that we will see some consolidation now, or even a filling of the gap, but with the caveat volatility will be seen in abundance this week, it looks like the buyers are back in charge.
Those with strong hearts and an ability to see past the volatility might think we may now enjoy a move back towards 6300 in the short-term, which would bring the price back to the descending trendline off the May highs.
A drop back towards the bottom end of the gap around 6060 would not be unsurprising, but sellers will want a move below 6000 to really suggest further downside is likely.