Technical analysis for 21st July 2026
The overall picture has improved slightly from yesterday. Buyers have stepped back into the DAX40 and Gold, while the FTSE100 remains mixed and the Nasdaq continues to lag. The S&P 500 is holding up better than the Nasdaq but has yet to fully regain bullish momentum. Today's charts suggest a more balanced market than yesterday. Defensive buying has appeared in Gold, while the DAX is attempting a recovery from oversold conditions. The Nasdaq remains the weakest index, so relative-strength trading still favours long Gold / selective DAX longs and selling Nasdaq rallies until it can reclaim its short-term moving averages.
The markets head into Tuesday with a slightly more constructive tone than we saw at the start of the week. The biggest overnight development has been a modest easing in oil prices after reports that fresh diplomatic proposals have been delivered to Iran in an effort to reduce tensions in the Gulf. That has helped improve risk sentiment.
Asian technology stocks have recovered well after last week's aggressive sell-off, while US futures have edged higher as investors position themselves ahead of what could be one of the most important earnings weeks of the year. Despite the improvement in sentiment, I don't think this is a market where traders should become complacent. Oil remains close to historically elevated levels. Bond yields are still high. Inflation concerns haven't disappeared. And we still have a packed calendar of earnings from Alphabet, Tesla and several other major technology companies that could significantly influence market direction.
FTSE 100 - Neutral
- The FTSE has lost some of the relative strength it showed yesterday.
- Technical picture
- Rejected from the 10 EMA.
- Trading beneath the Pivot.
- Still above the rising longer-term support.
- RSI remains neutral.
- The market is caught between rising long-term support and short-term resistance. A break above the Pivot would favour buyers again.
DAX 40 - Neutral Bullish
- The DAX has produced a constructive bullish candle after several sessions of weakness.
- Technical picture
- Strong bounce from the lower channel support.
- Price has reclaimed the falling trendline support.
- Testing the Daily Pivot.
- Still below the 10 EMA and 25 EMA.
- RSI has turned higher from oversold territory.
- The recovery is encouraging, but the DAX still needs a daily close above the moving averages before a fully bullish outlook returns.
Nasdaq 100 - Bearish
- The Nasdaq remains the weakest major index.
- Technical picture
- Trading below both the 10 and 25 EMA.
- Still beneath the descending channel resistance.
- Price remains under the Pivot.
- Momentum has stabilised but not reversed.
- Until price reclaims 29,100–29,200, rallies are still likely to be sold.
S&P 500 - Neutral
- The S&P continues to outperform the Nasdaq but remains in consolidation.
- Technical picture
- Holding above the 200 EMA.
- Sitting around the Daily Pivot.
- Long-term rising channel remains intact.
- Short-term momentum remains mixed.
- A move above R1 would restore a bullish bias, while a break below S1 would shift momentum back to the sellers.
Gold - Bullish
- Gold has produced the strongest improvement of today's charts.
- Technical picture
- Strong bullish recovery candle.
- Price has reclaimed the Daily Pivot.
- Closing back above the 10 EMA.
- Attempting to break the descending channel.
- Although still beneath the 25 EMA, momentum has clearly improved.
- Gold now has the best-looking reversal setup. Holding above the Pivot keeps the focus on a move towards R1 and R2.
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