IG Group forms a symmetrical triangle pattern

IG Group, the financial derivatives trading services provider, posted strong 1Q trading update as the coronavirus crisis continued to drive up trading volumes on financial markets.

"The business performed very strongly throughout the first quarter, delivering net trading revenue of £209 million, 62% higher than the same period in the prior year (Q1 FY20: £129.1 million)."

"New client acquisition remained strong as a result of continued demand and improved marketing effectiveness across multiple channels, with 34,600 new clients placing a first trade in the quarter, 129% higher than the prior year."

From a chartist’s point of view, the stock price is oscillating within a long term symmetrical triangle pattern in place since June 2016. The 50MMA started to flatten out, the stock price momentum is weak. A break above the upper boundary of the pattern at 874p would reinstate a bullish bias with 968p and 1155p as targets. Alternatively, a failure breakout of the resistance threshold would call for a new down move towards 534p.

Source: GAIN Capital, TradingView

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