FTSE 100 reverses into crucial breakdown level
The FTSE 100 has turned lower yet again following a rally into the 76.4% region. The 7445 low that has so far capped today’s downside is going to be absolutely crucial for the ongoing outlook.
A break below that level, which coincides with the 200-day simple moving average (SMA), would complete a head and shoulders formation for the index, bringing further downside. As such, watch for a break below 7445 for a bearish outlook, while a rally through the recent 7530 peak would bring about a more bullish short-term view.