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FTSE 100 faces more losses
The failure to break above the 50-day simple moving average (SMA) at 7312 this week emboldened the bears on the FTSE, and we saw further losses yesterday. Some short-term support is possible at 7192 (the low of 24 February), and below this, the index is poised to return to the 7090 level that held last week.
The creation of a new lower high this week certainly lends credence to the theory that more downside is ahead, but it will require the bears to break the 7090 level, which would raise the prospect of a move to 6940 and lower.