Technical analysis for 23rd July 2026
Today's session starts with two competing themes. The first is another very strong set of earnings from the technology sector.
Alphabet once again demonstrated the strength of cloud computing and artificial intelligence, while management also confirmed another significant increase in AI infrastructure spending. Tesla's results reinforced the same message — the investment cycle in AI and automation is still accelerating.
The second theme is much less supportive. Oil has continued climbing overnight and is now trading around six-week highs following renewed attacks on shipping routes in the Middle East. Brent is approaching the $100 level, Treasury yields have moved higher again and inflation has returned to the top of the market's worry list.
So although Asian equity markets have reacted positively to the AI story, investors are still questioning whether the scale of spending can ultimately justify current valuations.
The FTSE100 remains the clear leader, the DAX40 is attempting to break higher after reclaiming its moving averages, Gold is consolidating after its strong rally, while the Nasdaq is still lagging despite signs of stabilisation. The S&P 500 remains constructive but is lacking momentum.
FTSE 100 - Bullish
- The FTSE remains the strongest equity index on your charts.
- Technical picture
- Another strong bullish session.
- Trading comfortably above both the 10 EMA and 25 EMA.
- RSI is approaching overbought territory but is not yet showing signs of rolling over.
- Price remains inside the rising channel and continues to print higher highs.
- The FTSE continues to be the strongest-looking index. Any pullback toward the Pivot or 10 EMA would likely attract buyers.
DAX 40 - Bullish
- The DAX continues to recover well after Tuesday's strong reversal.
- Technical picture
- Trading above both the 10 EMA and 25 EMA.
- Holding above the Daily Pivot.
- Price is testing the upper half of the descending channel.
- RSI has improved into the low-50s, suggesting momentum is rebuilding.
- While price remains above the Pivot and 10 EMA, I would favour buying intraday pullbacks rather than chasing strength into resistance.
Nasdaq 100 - Neutral / Slightly Bearish
- The Nasdaq remains the weakest of the equity indices.
- Technical picture
- Small indecision candle sitting around the Daily Pivot.
- Still below both moving averages.
- Still trading inside the falling channel.
- Buyers have slowed the decline but have not yet regained control.
- A daily close above 29,150–29,200 would improve the outlook. Until then, rallies into resistance may continue to fade.
- This remains the weakest chart. Unless it can establish itself above 29,150, I would avoid aggressive longs and instead wait for either:
a confirmed breakout above resistance, or a pullback into support with a stronger reversal signal.
S&P 500 - Neutral Bullish
- The S&P continues to outperform the Nasdaq but lacks a strong directional catalyst.
- Technical picture
- Small-bodied candle around the Daily Pivot.
- Holding above the 200 EMA.
- Higher lows remain intact.
- The broader rising trend channel is still supportive.
- The underlying structure is positive, but I would expect range trading unless price breaks above R1.
Gold - Bullish
- Gold is pausing after its recent rally but remains in a constructive position.
- Technical picture
- Small consolidation candle after a strong advance.
- Holding above both the Pivot and the 10 EMA.
- Momentum remains positive.
- Trading beneath descending channel resistance, so expect some overhead supply.
- Gold still favours buying dips while it remains above the Pivot and the short-term moving averages, although a period of sideways consolidation would not be surprising after the recent sharp rally.
The leadership remains with the FTSE100, followed by Gold. The DAX40 continues to improve and is close to confirming a broader bullish reversal, while the S&P 500 remains constructive without breaking out. The Nasdaq is still the laggard and needs to reclaim its short-term moving averages before its daily bias turns decisively bullish.
FTSE 100 Analysis
The FTSE remains one of the strongest developed market indices. Higher oil prices continue to support the heavyweight energy names and that has once again helped offset weakness elsewhere. The combination of resilient banking stocks, defensive sectors and the energy complex means the FTSE continues to outperform many overseas markets. While oil remains elevated, I think that relative strength is likely to continue.
- What I'm Watching
- The first thing I want to see today is whether buyers continue defending the recent support area.
- If the market produces another sequence of higher lows after the open, I think there is every chance we see another attempt towards the recent highs.
- I'll also be watching Shell and BP closely.
- If they continue benefiting from stronger crude prices, they could once again underpin the wider index.
- Trading Plan
- I still prefer buying pullbacks rather than chasing early strength.
- The cleaner setup would be an orderly retracement into support followed by bullish confirmation.
- If support fails and lower highs begin developing, I would step back and reassess.
- For now, the buyers remain in control.
Interested in how to start trading the FTSE 100? Frequently Asked Questions on Spread betting
Recommended Broker for trading - MT4/5, web and mobile
IC Markets - offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!
Join my Membership for Trading Tips, Support and Resistance Levels with Live Trading
If you would like more detailed analysis for FTSE 100, DAX40, Gold and the S&P500, including the trades that I am looking to take myself, then please join my active members community.
Keep up to date with new website posts, free sign up below
