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 continues to grind lower
The FTSE continues to move lower in a retracement of the bullish move we saw last week. It was crucially notable that last week saw a close back above the 5916 swing high. This provides a good clue that we could form a new higher low for another bounce. For now, we have seen no bullish reversal signals and thus this selling pressure is expected to continue until we see a short-term bullish reversal signal.
So far, this morning has found support at 5768, which marks a cluster support from last week. However, we would need to see an hourly close back above 5846 to become bullish once more. Until that happens, further losses are likely.
Support levels of note are 5764, 5737 and 5600. Resistance levels are at 5846, 5916 and 5953.