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FTSE 100 recovery falters at 200-hour SMA
An impressive FTSE 100 recovery from below 7200 on Friday afternoon was just as spectacular as the swan dive that preceded it in the morning. The rally edged over into the early part of Monday, but faltered at the 200-hour simple moving average (SMA), 7284, thus creating a new lower high after last week’s extensive consolidation above 7260.
If 7260 is broken again we may see a push towards 7196 and the 50-day SMA. The fact that last week’s high was below the high set in early January suggests any pullback from here could move below the 7090 lows of the January fall.