Technical analysis for 2nd November 2026
Global financial markets begin November attempting to recover from a difficult end to October, with renewed concerns about artificial intelligence spending, falling oil prices and an important week of economic announcements dominating sentiment.
Friday saw another sharp decline in US technology shares, as investors questioned whether the enormous amounts being invested in AI infrastructure can generate sufficient financial returns.
However, Asian equities and US futures have shown signs of recovery this morning, helped by expectations surrounding Apple's earnings.
The most encouraging development is a sharp decline in oil prices. Brent has fallen towards $110 per barrel amid renewed diplomatic efforts involving Iran and Qatar, potentially easing some of the inflationary pressure that has troubled financial markets.
The key question for today is whether improving energy prices and renewed buying interest can stabilise equities, or whether the correction in technology shares has further to run.
The FTSE is starting November with a weaker short-term technical picture. Friday's attempted recovery has faded, and the index is trading below its daily pivot, with the 30-minute chart showing a sequence of lower highs.
However, the daily chart is still relatively neutral. Price is sitting close to its 10- and 25-day moving averages, and RSI remains slightly above 50.
My prediction today is for an early attempt to recover towards 10,732-745, followed by renewed selling if that resistance holds.
I favour selling a confirmed rally rather than chasing the market lower at current levels.
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