Technical analysis for 22nd October 2026
Global equity markets are showing a more positive picture following Wednesday's gains, although sentiment has become cautious again overnight.
Strong US corporate earnings are helping the S&P 500 recover from last week's technology sell-off, while the FTSE 100 and DAX have stabilised. However, Brent crude has climbed back above $110, and concerns about the financing of artificial intelligence infrastructure continue to weigh on investor confidence.
The most important development this morning is the renewed divergence between improving company earnings and a less favourable macroeconomic environment. High oil prices, elevated borrowing costs and geopolitical uncertainty remain significant obstacles to a sustained recovery.
The technical picture has deteriorated since Monday. The recovery that took the FTSE towards 10,900 has stalled, and the market is now testing an important support region around 10,685–710.
The daily chart is still holding above its 10 and 25 EMAs, but the 30-minute chart shows a sequence of lower highs and repeated failures to recover above its moving averages.
My prediction today is for an initial attempt to recover towards 10,730–740, followed by another move lower if sellers defend that resistance.
I favour selling a confirmed rally rather than buying immediately at current levels.
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