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Although we saw a strong defence of the FTSE 100’s 6700 level yesterday, the market has so far struggled to break above the 200-day simple moving average at 6745. A bounce needs to sustain gains above this level, which might then raise the prospect of a move back to 6840.
Yesterday saw the market move below the 1 April low of 6672, but then come bouncing back, so there is still some buying activity out there. A drop through this April low would open the way to the lows of the year at 6300, reversing all the gains made in the past six months.