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FTSE drops to key support
The FTSE saw yesterday’s early rally fade back down to the crucial 5600 support level. This level represents the lows of the week, alongside the low from 20 January and the 200-month simple moving average (SMA).
As such, the reaction to 5600 will determine the state of play for the day, where a closed hourly candle below would likely spark another leg lower in which 5173 represents the next major support level.
Alternately, intraday bullish reversal signals should be watched out for as this could provide another countertrend bounce with 5713 and 5740 the next key levels of resistance.