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 losses continue to take out crucial support levels
The FTSE has continued to plummet, with today’s price action moving below both the December low of 6123 and October low of 6070. It is difficult to gauge exactly when this rout will stop, and it takes a brave person to go long in such conditions. Thus I see it worthwhile to watch intraday charts, and the current upside seen on the hourly chart points towards a recovery for the time being.
Given the trend, I would be looking for the sellers to come back into play soon. The 6070 and 6123 areas have now turned into key resistance levels from previous support, and thus I am bearish as long as the price remains below 6123, with reversal signals such as a bearish engulfing possibly around the 6070-6123 region expected to resume downside.