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FTSE warning signs appear
The FTSE has been trading within a rising wedge formation over the past week, with the price increasingly moving out of the pattern as we reach the apex. The strong selloff seen yesterday acted as a warning sign, with the close below 6400 notable. A rising wedge is a bearish pattern and thus there was always a good chance of a selloff on the break out.
This morning is seeing the price moving higher through 6400 resistance, yet the crucial question is whether a break through 6450 will occur to resume the uptrend. If not, this could be the beginning of a correction lower, should the price close below 6365. Support levels of note are at 6400, 6371 and 6365, with resistance at 6429, 6448 and 6460.