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FTSE 100 index might weaken in the near term

After recording a bearish engulfing candlestick pattern on the daily chart on 11 August 2015, the FTSE 100 index has continued to decline last week and moved as low as 6544.42 on Friday, before closing at 6550.74. Daily MACD is trading in the negative territory along with the RSI and stochastic grinding lower, suggesting that the index might weaken in the near term. With the 8H lower Bollinger band (currently placed at 6538/35) acting as a strong support, momentum oscillators are pointing south, reflecting at a downbeat technical picture. Overall weekly technical picture also appears to be gloomy, as the momentum oscillators are trading with a bearish bias. Crucial weekly support to be seen resides in the 6495/6486 zone, followed by the 6444/30 zone and 6328/20 level, a move back below the latter is likely to trigger increased selling pressure, paving way for the 6229/15 zone and 6144/40 level. On the contrary, important weekly technical obstacle is located at the 20week SMA (currently trading at 6829/30), followed by the 6911/21 zone and 7122/30 level .