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FTSE trading within crucial zone
Yesterday’s FTSE 100 pullback has reversed higher from the 6033 support level, bringing us to a very interesting point in time. To the upside we have the absolutely crucial 6128 resistance level, where a break higher would negate the clear downtrend in play over the past three months.
To the downside, we have the 6033 support level, which is beginning to look like the neckline of a potential topping pattern. The direction of this index is going to be set by a break out of this range.
The trendline break seen this morning points towards a possible challenge to 6128, yet until it happens, be aware that the importance of this level should not be undermined and thus another move lower is a distinct possibility. Ultimately, the key will be whether the index breaks upward through 6128 or below through 6033 to gauge ongoing direction.