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 pulls back to SMA support
The FTSE has been moving lower at the start of this week, following the high created on Friday morning. While this doesn’t look good on the face of it, the chart shows that this is just the latest in a series of challenges of the 50-period simple moving average (SMA).
The market is in a clear uptrend and this is unlikely to end here, with a break below 7510 required to provide a more bearish slant. Until then, the price is approaching the 70% retracement and thus a long around here looks attractive. A bullish outlook remains in place until we break below 7510.