This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
FTSE 100 showing signs of weakness
The FTSE 100 seems to be struggling around a key resistance level, with the failure to rally through yesterday’s high seeing the index turn lower towards key support levels.
While we have seen a wider consolidation over the past two months, the creation of higher highs doesn’t seem to be providing any sort of bullish breakout yet. This points towards the potential for a move lower in the near future. The two-hour chart highlights the potential for this, with lower highs in play this morning. Should we post an hourly close below 7706, then this would point towards the bears coming back into play.