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FTSE selloff hits the buffers but questions remain
Overnight price action has brought about a recovery of sorts from the 6649 low posted yesterday. The ability to hold up above this cluster of support levels (6691, 6672, 6649 and 6624) is crucial as a move below could spell out something more significant in this current pullback.
The price is currently attempting to break lower once more, and thus the ability to create a new higher low and not move below 6649 is absolutely crucial. Given the bearish flag formation we are seeing, I do expect further losses, especially if we see a move below 6649. However, should the price begin to be bought up before that point, it could be a good sign that the worst is over.
A move back above 6715 for the index would likely point towards a return to the 6727 and 6808 resistance points.