Why does this share price spike at exactly 12:00pm?

[Maybo]

I thought I'd found the secret to untold wealth and one that everybody else had missed :smileylol:

 

The chart for Morgan Sindall spikes at 12:00pm on certain days.  Great! I just need to go long on it, set a limit of 1000 points and boom!!!  Except at the same exact time the market closes and then opens again after it returns to normal levels.

 

Obviously a beginner's question - but why does that happen?

 

 

[JamesIG]

Hi  and welcome to IG Community 

 

At midday there is an intraday auction on the London Stock Exchange. You can read more about that here. The IG charts print the quoted bid/offer spread at any given time, even if a stock doesn't trade at this exact level. Sometimes (for a split second going into / out of the auction) the spread can widen considerably when people pull their orders, and in turn this causes the print. I hope this clarifies things for you. 

[JamesIG]

 - I also forgot to add - we're actually planning to improve our chart data so that these spikes don't appear. This should be more useful for technical analysis. Hope this helps.