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 bouncing about to end?
Those brave enough to buy the dip yesterday have enjoyed a good bounce, but that may be coming to an end now. The FTSE made a new lower low yesterday, at 7424, and now we look to see how the bounce back to 7480 plays out.
A turn lower from here gives us a selling opportunity, as part of broader equity weakness. We also saw something of a double top yesterday on the hourly chart, around 7535, so the bearish signals are stacking up. Downside support lies around 7409, and then on to 7360 and 7260.