Technical analysis for 27th October 2026
Global markets are showing a noticeably more positive tone this morning, with renewed enthusiasm for artificial intelligence lifting technology shares and a retreat in oil prices helping investor confidence. Monday's session produced gains across the major US and European indices.
Overnight, Asian technology markets have rallied sharply, suggesting investors are becoming more willing to return to riskier assets following the recent correction. However, the recovery faces several important tests. The Federal Reserve announces its latest interest-rate decision tomorrow, the UK Budget is approaching, and major technology companies are preparing to report earnings.
The key question today is whether this improvement represents the beginning of a sustained recovery or simply a temporary rebound ahead of significant economic announcements.
Today's setup is particularly interesting because the FTSE has suffered a sharp overnight reversal, taking it below the daily pivot and the short-term moving averages on the 30-minute chart. However, the daily chart is not yet decisively bearish. Price remains above its 25-day EMA, and daily RSI is still above 50.
My prediction today is for an initial recovery attempt towards 10735-755, followed by renewed selling if that resistance holds. I favour selling a confirmed rally rather than chasing the decline at current levels. We have dropped to the 2h support level at 10705 overnight following the short from 10772 yesterday so a good spot to take some profit here.
Today's bias: Bearish below 10737-755
- The short-term technical picture has weakened, with sellers taking control of the overnight session.
- The daily chart still offers some support around 10690-700, so the market could bounce before deciding its next direction.
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