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.
The ongoing Greek story will continue to dominate this week, as the failure of a breakthrough this weekend gives until Friday to find the funding for a €300m International Monetary Fund payment. Elsewhere, the first week of the month means we are looking at a whole raft of economic releases which have the potential to rock markets. Today is likely to be dominated by the release of manufacturing PMI numbers across the eurozone and in the UK.
FTSE's momentum could carry it to 7065
The selloff seen on Friday bounced perfectly upon the ascending trendline that has been propping up price action throughout 2015. The clear respect of this trendline provides confidence that we are set to bounce higher and currently that is happening. As ever we are watching 7065 as the main resistance to watch out for. A close above that level would be bullish, yet in the past we have rarely managed to do so for very long.
Thus I am bullish for a move back to 7065 in the early part of this week, yet the manner in which it engages with 7065 will provide an indication of whether we will continue to range or are going to set a new high this week.