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 eyes 6764
Three days of gains have almost entirely reversed the bearish outlook we saw at the beginning of the week. The index has closed above the downtrend line off the May highs and pushed on. The target now becomes the 200-day SMA at 6764 and then on to the July highs at 6800.
Daily stochastics are yet to turn bullish, but should do so if the index can sustain gains today above 6650. We would need to see a turnaround and close back below 6580 and the previously mentioned downtrend line to reverse and put the index back in a bearish formation.