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FTSE sell-off negates previous gains
The FTSE 100 is selling off following a rally which crucially failed to regain the 6854 resistance level. This means the perception of price action as a retracement of the 6854-6707 sell-off was correct.
As such, we are now in the descendancy which points towards a fall back below 6707. The near-term support level to watch is 6731, which if broken would provide greater confidence we are going to see a sell-off as the next move for the index.
A break back above 6854 would negate this bearish view.