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 looking set to break lower
The FTSE is turning lower from trendline resistance this morning, in what looks like the beginning of the next leg lower for the index. With the price having broken through trendline support, the key here is whether we can see the 7335 support level breached. An hourly close below there would point towards a move back into 7294 support. This is dependent on the break of 7335, where the inability to do so could bring us back into the 7386 resistance, which has been respected throughout the week thus far.
However, given the triangle pattern in play, there is a strong chance we could be finally seeing the breakout for this market.