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FTSE 100 turns into trendline support
The FTSE 100 has been moving lower overnight, following a rally into the 7400 mark yesterday. Crucially, we are seeing lower highs and flatlining lows on the wider view, thus forming a descending triangle. With that in mind, another move lower from here does seem a strong possibility.
However, there is a clear trendline support to contend with first, which is currently around the same level as the 50-period (4-hour) simple moving average (SMA). A break above 7400, or below the 7360 mark will give us a better idea of which direction this market wants to move.