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 turning lower, but for how long?
The FTSE managed to regain some ground yesterday, following Friday’s sharp sell-off. It is difficult to know whether we are seeing a retracement before another push back above 6771, or else a push back below 6654. Should the latter occur, it would have significant bearish consequences for the index.
For now, the short-term downtrend looks likely to persist, yet with Fibonacci support impending (6698, 6689 and 6681), any bulls may see those as an opportunity to get long. Ultimately the directional bias will be determined by whether we see price break through 6771 or 6654.