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FTSE 100 surges off overnight lows
The FTSE 100 tested the support zone around 6920 yesterday, creating a lower low in the intraday charts, but today it has rebounded from this level.
A sharp overnight rally has brought the price back to 6980, which was supported throughout the past week. Above here, the price targets a confluence of horizontal resistance, trendline resistance and previous trendline support around 7025. A turn lower from this level (or below it) would mark another possible lower high within the move down from the mid-November high, suggesting another attempt to push below 6900. A rally through this level targets 7100 and then 7200.