The FTSE 100 (daily chart) has continued to show substantial weakness after making a marked decline from its multi-year peak of 6882 that was established in late February. That high just slightly surpassed the strong resistance imposed by two other relatively recent highs – 6876 in May 2013 and 6867 in January – before plummeting within the past month. Having just reached a six-week low of 6490 late last week, the UK equity index has declined by about 5.7% since its noted 6882 peak in late February.
In the process of this sharp decline, the FTSE has pierced below both its 50-day and 200-day moving averages, and has also dropped below a key uptrend line that extends back to mid-2012. A similar dip below this trend line last occurred in late January before a sharp rebound. Any further weakness in the index should find a major support target around the key 6400 level. Any trading below that level could potentially place the index within significant correction territory. Key upside resistance currently resides around the 6650-6670 price area.
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