FTSE index with a bearish reversal


The FTSE 100 index was down nearly half a percent on Thursday and was trading at around 6,910 GBP. 

The long-term weekly chart is not looking so positive right now as the index made a false bullish breakout above previous highs, cleared out all the stop-losses, and then the price dropped back below those highs. 

That is usually a false breakout pattern, in this case, it could be a bearish reversal formation.

The main resistance for this week remains at 6,960 GBP and if the Footsie manages to close above it on a weekly basis, the reversal signal would be nullified for now. 

The next selling zone is expected at 7,000 GBP and afterward at the current cycle highs of 7,040 GBP.

Alternatively, the support could be near 6,870 GBP, where the 21-day exponential moving average is located. The next demand zone is probably at this week's lows of 6,850 GBP and the next target for bears would be at 6,800 GBP. 
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