Technical analysis for 29th October 2026
Global financial markets are digesting yesterday's Federal Reserve decision, the UK Budget and a dramatic divergence in the latest technology earnings.
The Federal Reserve left interest rates unchanged, the UK Budget avoided a major gilt-market reaction, and US equities finished modestly higher. However, after-hours trading highlighted the increasingly selective nature of the AI investment boom, with Microsoft rising sharply while Alphabet suffered a substantial decline.
Today's attention turns to the European Central Bank, US GDP and inflation data, and the implications of another increase in oil prices
The overall picture is one of stabilising equity markets, but with significant uncertainty surrounding inflation, borrowing costs and the returns companies can generate from AI investment.
The FTSE is showing signs of recovery following yesterday's weakness. The 30-minute chart has formed a series of higher lows, and price has recovered above the daily pivot
However, the broader daily picture remains uncertain. The index is still below important resistance around 10,739–740, and the recovery has not yet developed into a convincing bullish breakout on the daily chart.... however it does feel like its brewing on the lower timeframes.
My prediction today is for an attempt to test 10739-740, with a possible extension towards 10780 if buyers can break and hold above resistance. Unlike the previous few sessions, I have a slight bullish preference while the FTSE holds above 10690.
The 2h chart has however now locked in bullish with 10690 Hull MA support aligning nicely with todays daily pivot and the green 30m coral, as such this level looks to be a key support for today's session. A break of this would likely drop down to the 10645 low from yesterday and a possible overshoot to 10631 the recent low. Lower down then we have support at 10556 but I am not expecting that today.
If the bulls were to break above the 10770 level today then 10871 remains in play as an upside target. Look for more details from yesterday's budget to come out into the open as the small print bits are digested, with possible knock on effects for the FTSE100.
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