Technical analysis for 5th August 2026
We head into Wednesday with the market looking considerably healthier than it did just a few sessions ago. The biggest change has been the continued fall in oil prices. Brent crude has now dropped back towards the $78 per barrel area after renewed optimism surrounding diplomatic progress between the United States and Iran. Lower oil prices have eased inflation concerns, pushed Treasury yields lower and reduced expectations of another Federal Reserve rate rise in the near term.
That has been enough to reignite appetite for risk assets. Wall Street closed at fresh record highs overnight and Asian markets followed suit, with semiconductor shares once again leading the advance.
Interestingly, the market is beginning to distinguish between companies that are spending heavily on AI and those that are successfully monetising that investment.
Today the focus shifts towards the ADP employment report and ISM Services PMI ahead of Friday's Non-Farm Payrolls. These releases will help shape expectations for the labour market and, ultimately, the Fed's next move.
The overall picture remains constructive. The DAX continues to lead higher, US indices are attempting to break into a stronger bullish phase after reclaiming key resistance, the FTSE remains in its established uptrend, and Gold has produced its strongest bullish candle for several sessions.
FTSE 100
Bias: Bullish
- The FTSE continues to consolidate within its uptrend.
- Technical Picture
- Trend remains firmly higher.
- Price continues making higher lows.
- Holding above the rising 10 EMA.
- Recent candles show healthy consolidation rather than distribution.
- Trading Plan
- Continue buying pullbacks.
DAX 40
Bias: Strong Bullish
- The DAX continues to be the strongest chart of the group.
- Technical Picture
- Strong impulsive rally continues.
- Trading comfortably above the 10 EMA and 25 EMA.
- Price remains in the upper half of the rising channel.
- RSI is above 75, showing powerful momentum, although the market is becoming extended.
- Trading Plan
- Continue buying pullbacks rather than chasing highs.
S&P 500
Bias: Bullish
- Momentum continues to improve.
- Technical Picture
- Strong bullish candle has broken above recent resistance.
- Price is testing the upper trend channel.
- Both moving averages are turning higher.
- Buyers remain firmly in control.
- Trading Plan
- Preferred strategy remains buying intraday weakness.
Nasdaq 100
Bias: Bullish
- The Nasdaq has improved significantly.
- Technical Picture
- Strong recovery has broken back above both the 10 EMA and 25 EMA.
- Price is testing the upper boundary of the falling channel.
- Trading just beneath R1, where sellers may appear.
- A daily close above 30,050–30,120 would complete a bullish breakout.
- Trading Plan
- Bias remains to buy dips while above the Pivot.
Gold
Bias: Bullish
- Gold has improved considerably.
- Technical Picture
- Strong bullish breakout candle.
- Closed back above both moving averages.
- Buyers have regained short-term control.
- Momentum has shifted positively.
Strength Ranking
- DAX 40 – Clear market leader with the strongest trend and momentum.
- S&P 500 – Healthy breakout and buyers remain firmly in control.
- Gold – Strong bullish reversal with improving momentum.
- FTSE 100 – Uptrend intact, though consolidating beneath resistance.
- Nasdaq 100 – Bullish, but approaching a significant resistance area where confirmation is still needed.
Overall Market View
Today's charts show a broad risk-on tone. The DAX40 continues to exhibit the strongest trend and remains the standout market. The S&P 500 and Nasdaq 100 have strengthened after reclaiming important technical levels, although the Nasdaq is now testing major resistance. The FTSE 100 remains in a healthy uptrend with consolidation near recent highs, and Gold has shifted back to a bullish bias following a decisive breakout above its short-term moving averages. Overall, the technical backdrop favours buying pullbacks rather than fading strength across the major equity indices.
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