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 rallying back towards 6000
The FTSE saw a strong move higher yesterday, followed by a sharp decline at the release of the FOMC decision and statement. A typical ‘buy the rumour, sell the fact’ move. This morning is seeing a calmer climb higher, as the index attempts to regain the ground made up yesterday.
Crucially, we have seen a gradual stepped move higher today and this looks likely to continue. Much like the retracement lower this morning, it would not be surprising to see a gradual drift lower at some point, followed by a spike through the peak of this current move higher.
Thus a bullish short-term view is in play unless we see an hourly close below 5933. Resistance levels of note are 6000, 6024 and 6070. A close below 5933 would bring 5916, 5902 and 5878 support levels into play.