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FTSE 100 eyes 6200
It being non-farms day, the index has already confounded yesterday’s shorts by moving swiftly higher, with the price executing a textbook bounce off the 50-hour SMA yesterday and continuing to move upwards.
As was the case yesterday morning, the 6175 area is likely to provide resistance, and just above this, around 6200, is the rising hourly trendline from the end of last week. An attempt to breach this yesterday failed and prompted the selloff we saw in the afternoon, so it will be interesting to watch this one develop.
Ultimately however, the move is still contained within the broader range for September, so until the index moves through the 50-day SMA at 6291 the bulls have yet to shake off the bearish theme that has held throughout the month.