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 breaks through key support level
The FTSE has broken below the crucial 7308 support level this morning, with a resurgent pound proving a drag on the index. The break through trendline support also provides clues that we could be set to embark on a period of weakness following an unprecedented run. Further confidence of such a reversal would come with an hourly close below 7264, which represents a more important swing low.
However, the trendline and 7308 break provides an increased chance of weakness. With Theresa May set to speak this morning, we are likely to see significant volatility for the FTSE. In which case, the ability or inability to break below 7264 could provide us with clues of the next move.