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FTSE 100 defending crucial levels
Last week was the tale of the FTSE’s battle to hold the post-November rising trendline. As of this morning, the bulls are still winning here. The trendline and the 7300 level were both stoutly defended, while the percentage of members above their 50-day simple moving averages (SMAs) fell to its lowest level since November. This indicator has begun to rise, and as long as the trendline holds the potential for a bounce is still extant.
Intraday, the index bounced off the 7300 zone on Friday, but has run into trouble around 7385, where bounces stalled all week. A close above the latter level is needed to maintain upward progress, while a close below 7300 would put the index on a bearish footing, opening the way to 7260 or lower.