BAE Systems' first-half 2026 results, released on 30 July, showed sales up 9% to £15.8 billion and a record £84 billion order backlog, adding fundamental support to the FTSE 100's rally near record highs. The index touched a fresh intraday high the same day, though its RSI + MAs indicator has moved into neutral territory, signaling that momentum is slowing near the 11,000 resistance zone.
The FTSE 100 touched a fresh intraday high on 30 July, as strong earnings from BAE Systems combined with gains in mining stocks and firmer commodity prices to extend the index's rally near record highs.
BAE Systems earnings add fundamental support
BAE Systems reported first-half 2026 results the same day, with sales rising 9% year-on-year to £15.8 billion and underlying operating profit up 11% to £1.7 billion. Underlying earnings per share climbed 13% to 38.9 pence, and the company raised its full-year outlook for sales, operating profit and EPS. That guidance rests on a record order backlog of £84 billion, swelled by £16.4 billion in new contracts secured during the half.
Investors also weighed renewed developments surrounding Iran and positioned ahead of the Bank of England's rate decision.
Technical picture cools near resistance
The index has trended higher since a low near 10,450 on 21 July, advancing along a rising trendline toward a resistance level around 11,000 before breaking above the trendline into a consolidation phase.
It is now trading inside a narrow volume profile, with an upper boundary at 10,950, a lower boundary near 10,880 and the point of control at 10,910 — a tight range that leaves little room for an extended sideways move. The 11,000 area remains the near-term resistance overhead, while a green support level at 11,805 could come into play if the lower boundary breaks. The RSI + MAs indicator reads 50, 54 and 56, all in neutral territory with no clear directional signal.
BAE Systems' earnings add fundamental support for the rally, but the technical setup suggests momentum has started to slow, with the index still trading below its recent high.
Source: ActionForex
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