FTSE eyes 7120
Friday’s rally ran out of steam at 7050, with further weakness developing so far this morning. The index is presently flirting with the rising trendline off the September lows, and if it moves through here then we are looking at a test of Thursday’s lows at 6924.
Below this we would look to the 50-day simple moving average (SMA) at 6876 as potential support, similar to the price action at the end of September. A move higher needs to take out 7050 and then push on to 7120.