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FTSE 100 rebounding after wedge breakdown
The FTSE 100 sold off sharply following a double top formation completed on Tuesday. That has taken us into the 76.4% retracement at 7481. The subsequent rally has provided a bearish wedge, which has now been broken.
The 7481 low is going to be crucial from here, with a move back below that level greatly increasing the chance that we will see the price move back down through 7448. As such, the outlook is somewhat mixed for now, where the respect of the Fibonacci level points towards a possible resurgence. However, the near-term wedge signals that we could see some near-term weakness.