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FTSE asks question around crucial resistance
The FTSE 100 has been pulling back from 6024 resistance, which represents the November low for the index. The gradual pullback seen overnight has taken us to the 5946 support level with price now moving higher, with the 5978 representing the current resistance being challenged.
Ultimately, we are at a crucial inflection point for the FTSE, with historical and trendline resistance coming into play following on from a major rally. If we are going to continue this downtrend that has dominated recent months, we have to see the index turn lower very soon.
Thus be on the lookout for any further signs of weakness, with a closed hourly candle below 5946 pointing towards further downside. Alternately, a closed candle above yesterday’s high of 6033 would be a strong sign that we could challenge the crucial 6126 resistance level.