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 finally bounces
A bounce is finally being seen in London this morning, although it is small beer compared to the losses of the last four sessions. The market held above 5850 and has pushed on above 5900, confirming that the support zone of the August, September and December lows is still intact.
A look at the hourly chart shows the index could go all the way back to 6100 and still be constrained by the descending trendline off the late December highs. Nonetheless, a failure to hold above 6050 would suggest that the sellers are still in the driving seat.