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 100 downtrend remains in play
The FTSE has been trending lower since the market touched the all-time high of 7130 earlier in the month. The break below 6980 was a bearish signal and led to another sharp deterioration.
Subsequently we have seen price break below the key 6927 support level overnight. This means we have seen the index clear out a crucial zone of resistance encompassing the 13 October low, alongside the August and September highs.
With that in mind, it seems likely we will see the selling continue apace, where the creation of lower lows and lower highs provides the confidence we will see further downside.