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 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 looks like it could be continuing its recent consolidation, with yesterday’s sideways price action giving way to gradual losses overnight.
With a consolidation phase underway, the stochastic becomes more useful and as such, the current bearish cross could have implications for price action. Ultimately, the trend coming into this pattern means it makes sense to remain bullish unless we see an hourly close below 6432.
However, there is the potential for a descending channel to come into play over the short-term and as such, we would need a break and close through 6744 to resume the recent uptrend.