Technical analysis for 13th October 2026
Global markets are presenting a rather mixed picture this morning. European equities staged a strong recovery yesterday, but overnight weakness in Asian technology stocks suggests risk appetite is deteriorating again.
The FTSE 100 has recovered above 10,650, the DAX has regained 25,000 and the S&P 500 remains relatively close to its record highs. However, concerns about AI valuations, Middle Eastern tensions and elevated energy prices are creating fresh uncertainty.
There is one encouraging development: US Treasury yields have started easing, with the 10-year falling towards 5.19%. The dollar and oil are also lower this morning.
My preferred trade today is a pullback towards 10,645-655 followed by a confirmed bullish reversal. That would provide an opportunity to target 10,700 first, 10,716 second and 10,740 third.
However, I think 10,700 is likely to be a difficult level to overcome on the first attempt, particularly given weaker global equity sentiment.
Overall, I'm bullish for today's session, but more cautious than the improving charts might initially suggest. The 30-minute structure is strong, daily RSI has moved above 50 and the FTSE has reclaimed its daily moving averages.
The critical test is whether buyers can push through 10,700 and the descending daily channel. Until that happens, the recovery remains vulnerable to a rejection from resistance.
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