Technical analysis for 28th July 2026
Overnight, technology shares came under heavy pressure after reports that Chinese manufacturers have made significant progress in domestic chip-making equipment, raising concerns about future competition for established semiconductor leaders. ASML and other chip-related stocks were hit hard, while investors continue to digest the implications of massive AI spending ahead of earnings from Microsoft, Meta, Apple and Amazon later this week. At the same time, the sharp fall in oil prices has continued following the pause in US-Iran hostilities, easing inflation concerns but doing little to support equity sentiment. Markets are now focused on tomorrow's Federal Reserve decision.
The FTSE 100 continues to outperform and remains the strongest bullish market. The DAX has pulled back after yesterday's breakout but remains structurally bullish. The Nasdaq 100 remains firmly bearish with lower highs and lower lows, while the S&P 500 is weakening but still holding above major support. Gold continues to trade with a bearish bias after breaking back below its short-term moving averages.
FTSE 100 - Bullish
- The FTSE continues to show the strongest relative strength.
- Technical picture
- Trend remains firmly higher.
- Trading well above both moving averages.
- RSI holding around 64 without being overbought.
- Small pause after yesterday's rally rather than a reversal.
- Preferred strategy remains buying pullbacks into support rather than chasing new highs.
DAX 40 - Bullish
- Yesterday's breakout is now being retested.
- Technical picture
- Price remains above the 10 EMA and 25 EMA.
- Today's small red candle is simply retracing yesterday's strong move.
- RSI remains healthy around 60.
- Price is holding above the Pivot.
S&P 500 - Neutral / Slightly Bearish
- Momentum has softened.
- Technical picture
- Price has slipped below both the 10 EMA and 25 EMA.
- Consecutive red candles suggest sellers remain in control.
- SafeZone projection is still positive but fading.
- Approaching first support.
- Until price can recover above the Pivot and moving averages, rallies may struggle.
Nasdaq 100 - Bearish
- This remains the weakest major index.
- Technical picture
- Price continues making lower highs and lower lows.
- Trading below both moving averages.
- Still inside the falling trend channel.
- No bullish reversal candle yet.
- Continue selling rallies while price remains below the 10 EMA.
- A close above 28,500 would begin to weaken the bearish outlook.
Gold - Bearish
- Gold has weakened further.
- Technical picture
- Another bearish candle has pushed price below the Pivot.
- Trading beneath both short-term moving averages.
- Lower highs continue to develop.
- Momentum has rolled over.
- While below 4,085–4,105, rallies are likely to be sold.
- A break below 4,054 would expose the 4,034 area.
The key theme today remains European strength versus US weakness. The FTSE 100 continues to lead and offers the cleanest long setup on pullbacks, with the DAX also maintaining a constructive bullish structure after its breakout. In contrast, the Nasdaq 100 remains the weakest index and continues to favour selling into rallies. The S&P 500 has lost some momentum and needs to reclaim its Pivot and short-term moving averages before the bullish trend reasserts itself. Gold has shifted back into a bearish technical structure, making rallies into resistance more attractive than buying dips.
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