Technical analysis for 15th October 2026
The market outlook has changed significantly following yesterday's US inflation figures. Inflation came in higher than expected, triggering another sell-off in US technology shares and a sharp deterioration in Asian market sentiment overnight.
However, there is an interesting development beneath the headlines: US Treasury yields have actually fallen as investors seek the relative safety of government bonds. Oil has also retreated this morning, providing some relief for European markets. The result is an increasingly divided global market. The FTSE 100 and DAX demonstrated resilience yesterday, while the S&P 500 and AI-related shares are facing considerably more pressure.
The FTSE 100 is looking increasingly bullish this morning, with the price back above the 10700 level. We have Hull MA resistance to start with at 10717 so the bulls will be looking to break this which would open up a potential path towards the 10791 level today, if it can jump some prior resistance levels.
The technical picture has improved further since yesterday. The daily chart shows a clear recovery from the early-October lows, with price now above both the 10 and 25 EMAs. Daily RSI has risen to approximately 58.6, indicating strengthening bullish momentum.
The 30-minute chart is also constructive, with price consolidating above its moving averages following yesterday's recovery.
However, the FTSE is approaching an important resistance area around 10,742-770, where R1 and the upper boundary of the older descending channel could attract selling.
My expectation today is for an initial attempt to move towards 10,725–742, followed by a decision on whether the FTSE can extend its recovery towards 10,770–792.
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