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 sells off from resistance
The FTSE 100 sold off once more from the crucial 6237-6249 resistance zone yesterday, providing the possibility of a bearish head and shoulders pattern, which would require a break below 6006 for completion. Currently the index is breaking below the crucial 6129 support level, which would provide a bearish outlook for the day should we see an hourly close below this level.
Ultimately, it seems we are stuck within the same 6060-6237 range that dominated trade throughout March. As such, a closed hourly candle below 6129 would point towards a likely return to 6060 in the coming days.
A return towards the bottom of the range would likely then bring about buyers once more. This view would be called into question with a closed hourly candle above 6157.