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. See full non-independent research disclaimer and quarterly summary.
FTSE 100 eyes 6200
Yesterday’s sharp drop took the index to its lowest level since mid-November. A small bounce overnight puts the index back on course for resistance around 6200, and if this is broken we can look towards targets at 6200 and then 6220.
Further downward moves will hit the bottom end of the daily rising channel around 6095, at which point we will see whether the index can repeat the feat of 16 November, when it bounced strongly.
If the bottom end of the channel is broken then support at 5960 will become the next target, followed by 5900.