The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.
FTSE begins to get a lift as resistance is broken
A support zone around 6430-6450 held strong yesterday and has led to a more bullish tone taking hold with the move above the intraday swing high of 6518. The move higher is likely to the index move back towards the week’s high of 6568. This level represents the 50% retracement, coupled with the resistance set by Monday’s highs and Friday’s lows. While I do believe there is a good chance we could see the price move back towards 6568, it is unlikely that this will happen in a straight line, and thus the likely near-term pullback would be looking towards the 6518 level as possible support.