FTSE 100 breaks below crucial support level
The FTSE 100 managed to break below the crucial 7279 support level yesterday, negating the wider creation of higher lows. This creates a scenario where further losses wouldn’t be a surprise, with the current bounce potentially forming another retracement before we sell-off once more.
Whether that is the case remains to be seen. However, for the time being, we are seeing a clear move towards the 61.8% retracement. Beyond that, we have the 76.4% at yesterday’s crucial 7279 support level. While we could see further short-term upside, we would need to break above 7391 to bring about a confident view that the FTSE 100 is moving into a more bullish phase.