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FTSE bites back following sell off
The FTSE 100 is attempting to move into a more bullish mindset following a breakdown below 6123 earlier this week which saw price fall to both 6070 and 6023 support levels. For now price has broken above a short-term resistance trendline and is attempting to break higher from yesterday’s high of 6183. Ultimately we need to see a move above 6201 to give some confidence that the index could take on less of a bearish outlook.
However, with the wider picture continuing to create new lows I remain bearish on the medium-term picture. Thus for today, I await confirmation of a new high above 6201 which would then bring a likely move to 6220 as the next resistance level. However, should price fail to take the 6201 level, this could be a good spot to see a reversal lower, which I believe would be a significantly bigger move than any further upside.
Initial support levels to watch come in at 6150, 6123 and 6116.