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FTSE 100 regaining ground after sell-off
The FTSE 100 managed to break out from its symmetrical triangle formation, with a break below the 7500 swing low bringing a sharp deterioration for the index. We are now seeing the FTSE 100 regain ground, with a break up through 7471 key to seeing further upside. Should we see an hourly close above that level it would point towards a move into 7484 as the initial resistance level.
However, even if that occurs, there is a good chance we could see further downside, given the size of the September/October rally. Conversely, watch out for a break through the 50 mark on the stochastic indicator as a bullish wedge breakout sign.