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 could move higher
Strength in sterling yesterday meant that the FTSE 100 was unable to join in the general market rally, gaining only 14 points. However, with other markets moving higher London may still join in. The crucial 7130 level, which was resistance back in October and marked the previous all-time high, has now become support, so we would need to see a close below this level to indicate more downward momentum is on its way.
We now look for a daily close above 7200, with 7309 and then 7359 becoming the next levels of resistance. Below 7130, 7061 and then 6945 would be possible areas of support.