FTSE 100 rallies towards 76.4% retracement
The FTSE 100 failed to break lower yesterday, with the key 6955 level remaining untouched, despite selling throughout the morning. The wider downtrend in place over the past month points towards the potential for another move lower, with the 76.4% Fibonacci of particular interest.
A break above 7256 would signal the return of the bullish longer-term outlook. However, until that happens, there is a chance we will begin to turn lower once more before long. A break below 6972 in particular would signal the beginning of the next downside move.