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FTSE rally could prove short-lived
The FTSE has managed to break above the 6857 mark this morning, creating an intraday double bottom. This points towards a deep retracement, with the 6871-6883 zone looking the likeliest destination. However, as long as price remains below 6903, the short-term downtrend remains intact.
Bear in mind the fact that from a longer-term perspective, the index still remains within an uptrend, which would be negated by a break below 6767. Nevertheless, until we see a break out of this downtrend, it makes sense to follow the trend.