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The FTSE 100 index is only just above a fresh 2yr low. Any chance of a December Santa Rally has pretty much been and gone (never say never, but next week would have to be something special). However the index is also showing welcome signs that it may be closer to bottoming out after a tough second half.
What are the signs? Rising lows from yesterday’s fresh trough. Up off the floor of a falling channel since mid-month. Up off the floor of an older falling channel since August. Sideways over the last few days.
What do we need now? A meaningful breakout above 6800 to escape the December channel and overcome yesterday’s highs and give confidence in a bullish reversal.
Bulls are looking for a break above falling highs resistance at 6730 to escape the 2-week falling channel and challenge 6800. Bears require a breach of rising support around 6660 if they want to see the index trade further south into 2019.
Our watch levels: Bullish 6730, Bearish 6660
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