FTSE 100 bouncing back
Three days of losses took the FTSE to the 7260 support level yesterday, where a bounce developed and saw the index holding above the 50-day simple moving average (SMA) at 7292.
Short-term, bears have to break 7350 and then 7385 to indicate the trend downwards from Thursday’s peak has reversed. A drop below 7260 is still required to really give the bears room for manoeuvre, which could lead to a test of 7150 or even 7000, near the 200-day SMA. A push back to 7380 and higher would raise the prospect of a move back to the all-time high at 7448.