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Having recovered some of last week’s sharp losses, the FTSE is back trading within a 5-month falling channel. Can it extend its rebound to revist the channel ceiling around 7350?
Although still 100 points away from November highs, the index is firmly out of sell-off territory, as the Bulls provided enough optimism to regain the channel’s mid-point with a 7172 weekly high.
Some scepticism still persists in the markets (look at oil prices in Bear market territory), with the Bears looking for another breakdown below falling channel’s floor around 7000.
Our watch levels: Bullish 7125 (overnight highs), Bearish 7075 (today’s lows)
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