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FTSE turning lower, but for how long?
The FTSE managed to regain some ground yesterday, following Friday’s sharp sell-off. It is difficult to know whether we are seeing a retracement before another push back above 6771, or else a push back below 6654. Should the latter occur, it would have significant bearish consequences for the index.
For now, the short-term downtrend looks likely to persist, yet with Fibonacci support impending (6698, 6689 and 6681), any bulls may see those as an opportunity to get long. Ultimately the directional bias will be determined by whether we see price break through 6771 or 6654.