FTSE breaking lower once more
The FTSE is selling off into yesterday’s low of 7361, which if surpassed will provide us with a lower low to accompany yesterday’s lower high. The difficulty here is knowing which way we are heading over the short term. On one side this could be the beginning of another move lower on the wider timeframe and thus a break back below 7304. Or else we could be looking at another period of consolidation before we break higher once more (like that seen earlier this month).
Given the current weakness, it brings the possibility of a deep retracement long from around the 7336-7345 range into play. However, we will ultimately need to see a break through 7452 to bring about a wider bullish outlook.