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FTSE 100 at its lowest since May
The losses seen yesterday took the FTSE to its lowest level since 9 May. The index bounced off the rising trendline off the December 2016 lows, so as long as we don’t see a close beneath 7296, the possibility of a bounce is still present.
Momentum is now firmly oversold for the first time since April, so the risk reward appears more skewed to the upside. However, the loss of support around 7380 is a negative development, and a bigger dip will see 7260 and then 7090 tested. A recovery back above 7400 would be a positive development.