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FTSE remains in consolidation phase
This morning’s battle for 6400 appears to be resolving to the downside. The choppiness of the past week has obscured the fact that upward progress of any solid kind has been distinctly lacking, with 6440 marking the real limit of the bulls’ ambitions. However, as we look into the next month, the bears will need to get this index back below 6300 to really prove that they are back in control. This would then allow for a possible move back towards 6207, and then 6100. If we cannot remain below 6300 then the current consolidation is likely to continue. Buyers need to get the index moving back beyond 6500 to preserve upward momentum.