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FTSE selloff brings us to notable support level
Yesterday saw the 6050 mark breached and subsequently the price sold off heavily to our 6000 and 5950 support levels. However, further downside has now brought us to the 5878 level which represents the 23 September low.
Ultimately I remain bearish and do expect us to see and break below 5768. However, there is of course a possibility of a bounce at any major support level, and thus the reaction to this level will dictate my short-term outlook.
A close below 5878 on even a 30-minute or hour chart would give me confidence that the selling will persist this morning. However, signals on short-term intraday charts that a bullish short-term reversal could be in the offing would point towards a possible spike, where the 5950 resistance level represents probably the most important near-term level to watch.