Technical analysis for 12th October 2026
Global markets begin the new week with a slightly more encouraging outlook, following Friday's recovery in equities and another decline in oil prices this morning.
The FTSE 100 gained more than 1% on Friday, the DAX rebounded and the S&P 500 recovered to finish the week higher. Gold has also continued its recovery towards $4,200. However, the underlying risks haven't disappeared. Government borrowing costs remain exceptionally high, geopolitical tensions continue to influence energy markets, and investors are now turning their attention to US inflation figures and the beginning of the third-quarter earnings season.
Generally today I am thinking that we will see a dip and rise play out, with the FTSE100 dropping off the 10595 level to start with to test the 10560 area where we have decent support with the daily pivot here. If the bulls can defend this and we then rise back they will be looking to break the 10595 level to test the 10650 level again - that was support and is now resistance - with the 10670 level above that.
10670 looks fairly key as we have the daily level here, along with the top of the 10d Raff channel so may well cap any rises today.
If the bears were to break below the 10558 daily pivot level then look for a test of Fridays low at 10510. That said, just prior to that we have the Hull MA at 10520 which has gone bullish once again following Friday's bullish run. As such I would like to see this area hold if seen, so also worth taking a long here with a stop just below the round number.
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