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FTSE pulls back to SMA support
The FTSE has been moving lower at the start of this week, following the high created on Friday morning. While this doesn’t look good on the face of it, the chart shows that this is just the latest in a series of challenges of the 50-period simple moving average (SMA).
The market is in a clear uptrend and this is unlikely to end here, with a break below 7510 required to provide a more bearish slant. Until then, the price is approaching the 70% retracement and thus a long around here looks attractive. A bullish outlook remains in place until we break below 7510.