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 turning lower from trendline resistance
The FTSE 100 has turned lower this morning, following a rally into trendline resistance overnight. With the price showing an arising wedge formation, there is still a strong likeliness that we will see further upside to come.
Given the current pullback, it makes sense to look for longs around the 50-61.8% retracement zone (7263-7245). A break below 7186 would provide a bearish signal, bringing about a likely sharp move lower for the index.