Technical analysis for 26th October 2026
Global financial markets begin an exceptionally important week with investors balancing three competing influences: elevated oil prices, uncertainty surrounding artificial intelligence investment, and a series of major central bank decisions.
The Federal Reserve, European Central Bank and Bank of Japan are all expected to announce monetary policy decisions this week. Meanwhile, earnings from some of the world's largest technology companies will provide a crucial test of confidence in the AI investment boom.
There is some encouragement this morning. Brent crude has retreated from last week's highs amid diplomatic efforts to ease Middle Eastern tensions, while US Treasury yields remain close to one-month lows.
However, sentiment is still fragile. Asian equities are mixed, Gold is hovering around $4,000, and European markets face continued pressure from energy costs and economic uncertainty.
The FTSE has started the week close to an important technical decision point. Friday's selling pushed the market lower, but the overnight session has produced a modest recovery. The question now is whether that recovery can develop into a sustained move higher or whether sellers will reappear around 10730-760.
Today's bias: Neutral to bearish below 10730-760
My prediction is for an early recovery attempt towards 10,730, followed by renewed selling if that resistance holds. A break below 10,690 would strengthen the case for a move towards 10,630 being Fridays low and daily support. 10556 is the level of note below this but with a potential bull Monday on the cards we shouldn't get this low.
The daily trend has not completely broken down, but momentum is weakening and the 30-minute chart still favours caution.
If the bulls were to break above the daily resistance 10775 level then looks for a test of the 10800 round number and then we have 10871 daily resistance higher still - again, that might be a big ask to see that today. Generally I am looking at the 10760 as resistance with a possible overshoot to 10775.
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