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This week the FTSE 100 extended its pullback from 2019 highs. It even broke below 7400 to abandon its post-Christmas rising channel. However, February rising support came the rescue at 7319 to stem the declines and keep the uptrend alive.
However, that breached 5-month trend-line has already served as resistance today. And falling highs are compounded 7415 as a new hurdle. So we may still be in a short-term falling channel, which needs another leg lower to retest February support before resuming the longer-term uptrend.
Bulls need to see 7415 overcome (exit short-term falling channel; break back above 5-month breached trend-line) before getting excited about seeing 7500 (or better). Bears may look to trade another down-leg towards 7330, hoping for aanother more meaningful breakdown.
Our watch levels: Bullish 7460, Bearish 7320
For even more on my FTSE observations, see what I else I wrote this afternoon.
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