Technical analysis for 25th August 2026
We start Tuesday with a noticeably more cautious tone, particularly around technology. Yesterday's FTSE performed well, gaining 0.4% to close at 10,854.32, finally breaking through the 10,825 area we've been watching. Mining stocks provided much of the support.
Wall Street was less convincing. The S&P 500 and Nasdaq both finished lower, with semiconductor and technology stocks coming under pressure ahead of Nvidia's results. Nvidia, Micron and Broadcom were among the notable decliners.
That weakness has carried into Asia overnight. The MSCI Asia-Pacific index is down around 0.5%, Japan's Nikkei about 0.9% lower and South Korea's Kospi around 2.7% lower as investors reduce technology exposure ahead of Nvidia.
FTSE 100
Bias: Bullish
Yesterday gave us the confirmation we've been waiting for. The FTSE closed at 10,854.32, comfortably above the 10,825 resistance level that has dominated our analysis for more than a week. That's an important technical development.
Key Levels
- The first area I'm watching is:
- 10,825–10,840
- I'd ideally like to see an early pullback into that region followed by buyers stepping back in. If that happens, the breakout becomes much more convincing.
- Above yesterday's close, I'm looking towards:
- 10,875, 10,904 daily resistance and then potentially 10,950+
- The bearish scenario would require the FTSE to fall back through 10,825 and fail to reclaim it.
Trading Plan
- This is now a buy-the-pullback market for me.
- My preferred sequence:
- Pullback → 10,825–10,840 → bullish reaction → LONG
- Mining strength helped yesterday and the FTSE's commodity exposure continues to give it some protection from the technology weakness affecting other indices.
- Primary bias: LONG above 10,825
For more more analysis including other markets please join...
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
