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.
The FTSE 100 has seen an extraordinary recovery this week, with the index recovering 80-90% of the sell-off seen on Friday. Despite this, we have not taken out the most important resistance level, with a break and closed four-hour candle above 6454 needed to negate the bearish connotations from Friday’s sell-off.
Price action is currently shaping up for a bearish start to the day, with price forming an intraday head and shoulders pattern. The projected target for this pattern takes us back to the 76.4% retracement, around 6283, yet the key thing required to show the sell-off is back on would be an hourly close below 6245.