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 at its lowest since May
The losses seen yesterday took the FTSE to its lowest level since 9 May. The index bounced off the rising trendline off the December 2016 lows, so as long as we don’t see a close beneath 7296, the possibility of a bounce is still present.
Momentum is now firmly oversold for the first time since April, so the risk reward appears more skewed to the upside. However, the loss of support around 7380 is a negative development, and a bigger dip will see 7260 and then 7090 tested. A recovery back above 7400 would be a positive development.