Technical analysis for 22nd July 2026
Today's tone has improved compared with the start of the week. Equity markets are attempting to recover after a strong rebound in semiconductor shares overnight, although traders remain cautious ahead of Alphabet and Tesla earnings, which are expected after the US close. Oil has climbed back above $92 per barrel as renewed threats to shipping in the Red Sea and Middle East tensions continue to support crude prices. European futures are slightly firmer, while US futures are broadly flat as investors wait for the next major catalyst.
The FTSE100 has broken higher, the DAX40 is attempting to reclaim key moving averages, Gold continues to strengthen, while the Nasdaq remains the weakest of the major indices despite stabilising. The S&P 500 is still consolidating within its broader uptrend.
After a volatile start to the week, today's market feels a little more balanced. Overnight we've seen a strong recovery across Asian semiconductor stocks following encouraging export data from South Korea and Taiwan, helping to improve confidence after last week's heavy selling in the AI sector.
That has lifted broader market sentiment. However, traders are still reluctant to become overly aggressive ahead of tonight's earnings from Alphabet and Tesla. These two companies could set the tone not just for US markets, but for the entire AI trade over the coming weeks.
The other story continues to be oil. Brent crude has moved back above $92 per barrel as renewed threats to shipping in the Red Sea and continuing tensions across the Middle East keep supply concerns firmly in focus. That means inflation remains a genuine risk despite the recent improvement in market sentiment.
FTSE 100 - Bullish
- The FTSE is now one of the strongest European indices.
- Technical picture
- Strong bullish follow-through.
- Price has broken above the Pivot.
- Trading comfortably above both the 10 EMA and 25 EMA.
- RSI has strengthened without becoming overbought.
- Rising trend channel remains intact.
- The trend remains constructive while price holds above the Pivot and 10 EMA.
DAX 40 - Bullish
- The DAX has followed through on yesterday's reversal and is now trading back above the short-term moving averages.
- Technical picture
- Strong bullish continuation candle.
- Price has reclaimed both the 10 EMA and 25 EMA.
- Trading above the Daily Pivot.
- RSI has recovered into positive territory.
- Still inside the broader descending channel, so resistance remains overhead.
- As long as price remains above the Pivot and the moving averages, dips should attract buyers.
Nasdaq 100 - Neutral Bearish
- The Nasdaq has stabilised but still hasn't confirmed a trend reversal.
- Technical picture
- Small indecision candle around the Daily Pivot.
- Still below both EMAs.
- Trading beneath descending channel resistance.
- Momentum has improved but remains weaker than the S&P.
- The selling pressure has eased, but buyers need a close above 29,150–29,200 to shift the daily outlook back to bullish.
- The Nasdaq is no longer an aggressive short, but it still trails the other indices. Until it closes above the 29,150–29,200 resistance zone, rallies are more likely to encounter selling pressure than those in the FTSE or DAX.
S&P 500 - Neutral
- The S&P continues to consolidate within its rising long-term structure.
- Technical picture
- Small doji near the Daily Pivot.
- Holding above the 200 EMA.
- 10 EMA has flattened.
- Rising trend channel remains intact.
- Expect range trading until price breaks decisively above R1 or below S1.
Gold - Bullish
- Gold remains the standout market.
- Technical picture
- Strong bullish continuation.
- Large bullish candle through the Pivot.
- Trading above both the 10 EMA and Daily Pivot.
- Testing the descending channel resistance.
- RSI continues to strengthen.
- The path of least resistance remains higher while Gold holds above the Pivot.
Today's charts show improving risk appetite, with European indices leading the recovery. The FTSE has transitioned into a stronger uptrend, the DAX has confirmed its rebound above key moving averages, and Gold continues to display the strongest momentum. The Nasdaq remains the relative laggard and will need a break above its short-term resistance to fully join the broader market recovery.
FTSE 100 Analysis
The FTSE continues to be one of the strongest major equity indices. Higher oil prices remain supportive for the index because of its significant weighting towards energy producers, while the improvement in global technology sentiment should also provide some support to mining and industrial names. The price action continues to suggest buyers are comfortable stepping into weakness.
- What I'm Watching
- The first thing I want to see is whether yesterday's support continues holding.
- If buyers defend any early dip, I think another move towards the recent highs remains likely.
- The performance of Shell, BP and the mining sector should also provide a good indication of broader market confidence.
- Trading Plan
- My preferred trade remains buying pullbacks.
- I don't want to chase strength into resistance.
- Instead, I want to see price retrace into support before looking for bullish confirmation.
- While support holds, I think the path of least resistance remains higher.
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