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FTSE drifts lower overnight
Yesterday’s blockbuster move higher for the FTSE brought about a new three-week high for the index, defying initial signals that we could be seeing a top for the index. The pullback we are currently seeing has brought price back to the 50 and 100-hour simple moving averages (SMA) along with trendline support.
Given this cluster of support levels, alongside the fact that we have failed to break any support levels within this move lower, there is a chance we could see another move higher from this area. As such, it seems worth watching out for any bullish reversal signs.
A move back below 5911 would bring the bearish view back into play. Resistance levels of note are 6024, 6033 and 6065, with support at 5973, 5946 and 5911.