Technical analysis for 26th August 2026
The immediate backdrop has improved: Brent crude has dropped more than 2% to around $86.40 as hopes increase that talks involving Iran and Oman could eventually lead to progress on reopening the Strait of Hormuz. Lower oil has also helped Treasury yields ease, which is constructive for equities. For today's trading, I'm therefore bullish on the FTSE, increasingly constructive on the DAX, cautious about chasing the S&P before Nvidia, and still bullish on Gold.
It could well be a buy the rumour sell the news pattern day with all eyes on the Nvidia results later. We got a good bounce from the 10830 level yesterday and have fully closed that now but I am looking to reload longs again on any more dips. The FTSE100 still looks strong and if the bulls can hold above the 10904 level then we should be on for a test of 11000, and then we have the 11170 area higher still - though not expecting that today!
We "might" have a slow day ahead of the results, though a continued drift higher would make sense. The S&P500 is treading water at the moment but with the bullish 2h chart and support at the 7650 level the bulls will be keen to get some gains on the board ahead of the results.
Apart from the FTSE100, the 10d Raff channel on the other markets are all heading downwards, while the still elevated oil price is helping the FTSE100, which is in a strong uptrend since Friday.
FTSE 100
Bias: Bullish
The FTSE continues to do exactly what we wanted following the reclaim of 10,825. Yesterday the index gained another 0.3% to close at 10,886.16, extending Monday's move and confirming that the recent breakout wasn't immediately rejected.
- Key Levels
- The first area I'm watching today is the 10878 daily pivot with 10,825 below that once again
- Now the 10,904 level has been surpassed, I'm watching the previous record region around 10,950, where we also have the key fib and the R2 level, along with the top of the rising 10d Raff channel.
- If 10,950 eventually gives way, the market starts looking towards the psychologically significant 11,000
- Trading Plan
- I'm maintaining the buy-the-pullback strategy.
- My preferred setup is:
- Pullback → 10,880 area → bullish reaction → LONG
- Alternatively:
- Break 10,900 → retest holds → LONG
- My preferred setup is:
- I'm maintaining the buy-the-pullback strategy.
- Primary bias: LONG above 10,825
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