Technical analysis for 31st October 2025
A decent bounce for our long from the 9690 level yesterday, with the bears failing to build on the drop off 9750. The bulls however managed to regain control and take it back towards 9770. That bullishness should continue into this morning and a rise again to test the 9780 area which is the recent high. If the bulls manage to break above 9794 R1 then we should see a test of the 9820 area which is both daily resistance and R2. A decent shorting level ahead of the weekend if seen.
Snapshot
- Short-term moving averages (10 & 25 EMA) are flattening and crossing lower, confirming a slight intraday bearish tilt.
- Price hovers just below the daily pivot (9741) and trades sideways after overnight weakness — indicating a potential range-bound to downside bias early in the session.
- The 200 EMA (≈ 9690) remains major intraday support, and a decisive break below could trigger a test toward S1 ≈ 9710 and possibly S2 ≈ 9655.
For the bears they will be looking to break below the 9690 level as that would more than likely then lead to the 9644 level and possibly 9630 S3. That said the bias does remain bullish and buying the dips at the 9690 level remains the safer play. The daily Raff channels are both heading up, and we are just testing the bottom of the 10d Raff as I write this, as 9725. Hence thinking an initial kick up to start with today.
Bear in mind that it can be sensible to be a bit more cautious on a Friday as well, and be a bit more risk off.
Bit of a long shot but if the bulls were to break above the 9823 level then 9875 R3 is in play, with 9915 above that which is the top of the 20d Raff channel.
S&P500
Similar picture with a possible rise and dip and I am looking for a test of the 6919 level where we have R1 and just above the key fib at 6911, along with the Hull MA at the 6920 level. As such we may see some profit taking and shorting here ahead of the weekend. Support wise, 6820 is the S1 and key fib area so I would like to see this hold on any drop down today. Initial support is from he daily pivot, 30m 20ema and coral at the 6860 level once thinking the bulls will be quick out the blocks!
DAX40
And again a rise and dip with the bulls looking to target the 24300 area, and the key fib at 24292. Assuming that R1 at 24257 can be broken on the way. The 2h chart is bearish with the red coral at 24200 though. If the bears trade control then look for support at 24024 S1 and then 23964 key fib.
Global Technical Summary
- Overall Bias: Bullish but pausing — indices extended after multi-day rally.
- Momentum: Still positive; intraday EMAs remain upward aligned on all four majors.
- RSI Readings:
- FTSE: 70 (flattening)
- DAX: 68 (upper channel)
- S&P 500: 74 (overbought)
- NASDAQ: 72 (firm but stretched)
- Volatility: Low-moderate — expect tighter ranges, especially into weekend close.
- Macro tone: US data stable; earnings tailwinds fading slightly; European equities may consolidate gains into month-end rebalancing.
Good luck and have a great weekend.
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