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FTSE 100 showing signs of potential impending sell-off
The FTSE 100 has been gradually gaining ground over the past three weeks, following a sharp sell-off in late May. However, that gradual ascent has been broken with the move below 7638 on Friday.
For the near-term that means a likely challenge of the 7553-7600 support zone once more. However, it is likely that this is the beginning of a stronger move lower for the index. As such, look out for how the index responds to that support zone, with a break below 7553 pointing towards a retracement of the wider 6841-7903 rally.
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