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 close above 7450 to avoid a bearish development
Having gapped lower overnight, and having fallen back below 7450, it may be that a new selling opportunity presents itself on the FTSE 100.
While on the daily chart the upward move remains intact, and already buyers have stepped in this morning, a failure to post a daily close above 7450, as we saw on Friday, would be a bearish development. Today could prove to be a crucial moment. Further downside momentum would head towards 7300, and then we would see if this zone of support can hold once more.