Footsie Forms Triangle Pattern

The FTSE 100 index was trading down on Wednesday and was seen 1.20% weaker during the London session, hovering at 6,940 GBP.

The index seems to be forming a triangle pattern and bears have pushed the price to the lower line of this triangle, which is currently being tested and is located at 6,945 GBP. If this support is taken out, the bearish trend could be confirmed, targeting the current swing lows near 6,850 GBP.

On the upside, the resistance of this pattern is near 7,050 GBP and if broken, the price might jump toward previous highs of 7,180 GBP.

However, sentiment appears negative for the Footsie index and therefore bears could be stronger over the next days. The bullish trend line on the RSI indicator is holding for now, but if broken as well, it might be a confirmation of the bearish bias.

Other European indices were trading in a positive territory, such as US futures and therefore the FTSE index was underperforming on Thursday.

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