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.
FTSE 100 creating new lower low
It looks like we have a new lower high being created here, with the index having moved back towards 6700 overnight before turning lower. Indeed, the 50-hour simple moving average (currently 6702) has been doing well since Monday evening to act as resistance.
A move through the crucial 6650 area would open the way to 6610 and the lows of 4 August. Below this the next area to watch would be 6500 and then 6430.
Any rally needs to get back above 6774, the late Monday high, and then push in the direction of the 200-hour SMA at 6804.