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The FTSE 100 has seen an extraordinary recovery this week, with the index recovering 80-90% of the sell-off seen on Friday. Despite this, we have not taken out the most important resistance level, with a break and closed four-hour candle above 6454 needed to negate the bearish connotations from Friday’s sell-off.
Price action is currently shaping up for a bearish start to the day, with price forming an intraday head and shoulders pattern. The projected target for this pattern takes us back to the 76.4% retracement, around 6283, yet the key thing required to show the sell-off is back on would be an hourly close below 6245.