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 needs to keep the momentum going
As noted on Friday, the bulls have managed to hold the FTSE above 7260, but now need to clear the 7363 area to maintain momentum. Friday saw them post a strong rebound, but upward strength is fizzling out around the 7360 zone.
A close above 7363 clears the way back to 7400 and higher, and ends the drift lower. A failure to push on raises the prospect of a move to 7260, but only a break through there moves the outlook from consolidation to correction.