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FTSE breaking from triangle
The FTSE 100 has been trading within a triangle formation, with horizontal support at 6847 being broken alongside a subsequent descending trendline. The key thing to note here is that despite this short-term downtrend, we have not taken out the 6809 swing low and as such, the uptrend remains in play, albeit with a deep retracement.
With that in mind, it is worth watching out for a potential bullish reversal to see the index back onto the wider uptrend. The proximity to the 76.4% retracement means we would get a strong risk/reward profile for such a rally.
This bullish view is in place unless we see an hourly close below 6809.