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 downtrend weakening
The FTSE sold off once more yesterday, with price recovering later into the session. While this morning started in a bearish manner, the worry was that we were not seeing selling occur with the same degree of vigor as previous occasions. Thus, this provided a nod to the potential of an upside break.
Given the clear downtrend in play, a bearish view holds until we see the break of 5969. However, this is seemingly ever more likely given the rally we are currently seeing. Until that does happen, the downtrend remains in play, where 5902, 5878 and 5864 represent the next support levels. The bullish signal would be an hourly close above 5969 which would bring resistance levels of 6011 and 6024 into view.