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 lacking clear direction, yet early bounce sets bias
We have seen the FTSE 100 moving in short-term trends over the past week, with periods of strength or weakness only lasting around two days at a time. This week has seen very little notable direction, with yesterday seeing the index grinding lower and this morning seeing a similarly unenthusiastic recovery.
For the short-term outlook, I am driven by the creation of a new high this morning, alongside the new higher low which provides a greater chance of upside as long as price does not fall back below the 6331 support level.
Upside resistance would be expected around 6409, 6429 and 6454. However, given the relatively short nature of recent trends, there is no evidence to say that we will trend in any meaningful way for the time being.