Equity Indices Weekly (13 Nov ’16)

UK FTSE remains vulnerableFTSE has not sustained the test of congestion around 7000, with prices falling back towards the 6676.56 low of 4 November.

Falling momentum studies and the bearish Tension Indicator are expected to keep prices under pressure, with focus to turn to critical support at the 6615/54~ lows from August-September. A close beneath here is looked for, with a multi-week bear trend then signalled, breaking below 6600 and opening up the 6520 moving average. Still lower is the 6460 retracement.

Any immediate bounce should continue to find difficulty clearing 7000 as background studies weaken and investors maintain a cautious stance.

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