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 turning lower from resistance zone
The FTSE 100 has begun to weaken following a doji candle posted at the 200-period (4-hour) simple moving average (SMA), which is marginally below a notable ascending trendline. Despite a sizeable bounce overnight, we would need to see an hourly close above 7354 to negate the recent signs of weakness in this market.
The 7262 support level needs to be broken to really provide confidence of a ramp up in selling. However, for now it looks likely that we will see further downside from this resistance zone.