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FTSE 100 moves away from support zone
As highlighted in yesterday’s update, the FTSE 100 has begun to create higher lows, as it slowly moves further away from the 7300 support zone. Yesterday’s rebound from the lows, helped by sterling weakness, suggests that the index might be following its eurozone and US peers higher, but we are yet to see the 7450 area broken in a meaningful way.
With the index dropping back from 7400 we look to see if it will hold above 7340, or break the rising trendline from the late August lows. If the latter transpires, then the 7300 zone comes back into play again.
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