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FTSE 100 rally unlikely to last
The FTSE 100 has managed to break below the crucial 7553-7600 support zone, bringing a heightened bearish outlook for the index. Overnight gains have taken the index back into the 7543 swing low from last week, yet we are already seeing the sellers come back in once again.
With such a shallow rally, it makes sense to await an hourly close below 7489 to provide another bearish signal. Alternatively, a deeper retracement of yesterday’s sell-off would also look attractive for shorts. A break above 7696 would provide a more bullish outlook.