Technical analysis for 23rd October 2026
Global markets are ending the week on a distinctly more defensive footing, with renewed selling in technology shares, a sharp rise in oil prices and a significant rally in government bonds.
The Nasdaq fell 2.6% yesterday, Brent crude surged above $113 a barrel, and Gold dropped towards $4,000. These developments suggest investors are becoming increasingly concerned about the economic consequences of expensive energy and the enormous financing requirements of artificial intelligence.
The FTSE 100 has once again demonstrated relative resilience, while the DAX remains vulnerable to Europe's deteriorating energy and borrowing-cost environment.
The most important development is the bond market. US Treasury yields have fallen sharply as investors seek safety, suggesting concerns about financial stability and economic growth are beginning to compete with inflation fears.
Today's technical picture is more balanced than yesterday's. The FTSE has stabilised following Monday's sharp sell-off, but buyers have not yet demonstrated enough strength to restart the broader rally.
The daily chart remains relatively constructive, with price above its 10 and 25 EMAs. However, the 30-minute chart shows sideways consolidation around 10,720–740, with repeated failures to establish a convincing move higher.
My prediction today is for an initial attempt to recover towards 10750-10775 where we have daily resistance, along with R1, but I favour selling a confirmed rejection at resistance rather than assuming the recovery will continue.
However, if the bulls are able to break above the 10775 level then I am looking for a potential rise towards the 10816 R2 level and then 10871 daily resistance above that - possibly a big ask for today ahead of the weekend to get that high, and given the cautious backdrop. With oil continuing to rise I am mindful that "something" might happen shortly to arrest the rise. Probably a Trump move...
Support wise, if the daily pivot were to break, and bear in mind that we also have the 2h Hull MA support at 10712 this morning, then I am looking at the 10659 daily support level along with the key fib at 10655.
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