Technical analysis for 30th October 2026
Global financial markets are ending October under renewed pressure as investors question whether the enormous sums being invested in artificial intelligence will deliver sufficient returns. Technology shares have fallen sharply overnight, government bonds are attracting substantial buying interest, and Gold is testing the important $4,000 level.
The FTSE 100 and DAX both advanced yesterday, supported by company earnings and the European Central Bank's decision to leave interest rates unchanged. However, the latest selling across Asian technology markets suggests European equities could face a more difficult session today. The main issue is no longer whether artificial intelligence will generate significant demand. It is whether companies can justify the scale of their investment while maintaining profitability and cash flow.
The technical picture has improved considerably since Wednesday. The FTSE has recovered above its daily 10 and 25 EMAs, momentum is strengthening, and the 30-minute chart shows buyers defending higher support levels. However, the market is approaching an important resistance area around 10,775, where the recent recovery could encounter selling pressure once again. This would be the third daily test of this level so in theory it should break, which would open up a potential rise towards the 10830 daily resistance level - with a possible stutter at 10813 R2.
My preferred setup is a long position following a pullback towards the daily pivot, or possible a slight overshoot once again to test the 30m 200ema at 10717 and Hull MA at 10710.
The 30-minute chart shows price consolidating above the pivot, with the shorter moving averages rising underneath the latest candles. This is generally constructive, particularly when the daily chart is also showing improving momentum.
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