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FTSE falls back from head and shoulders pattern
The FTSE has been turning lower from the 76.4% retracement, with the index creating a head and shoulders pattern this morning. That points towards a further deterioration today despite the current rebound.
Bear in mind that the failure to create a new higher low last week was a sign that this recent rally may not necessarily break through 7516 to continue the recent uptrend. As such, a bearish outlook is now in play, with a break through 7460 required to negate this head and shoulders pattern. Until then, this current bounce looks like a shorting opportunity.