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 rallying from 76.4% retracement
FTSE 100 is regaining some composure following a sharp drop at the tail end of last week. The drop below 7300 paved the way for a strong move to the downside. However, with the 76.4% level having clearly provided support around 7200, there is a good chance we could see further upside to come from here.
A break back below 7195 would bring a worrying outlook, with the potential for a move below the key 7088 level. Until then, it looks likely that we could see a rebound into the 7300 resistance level, at which point questions would be asked.