Zak Mir takes a charting look at some of the most closely followed small caps on the London Stock Exchange. Today’s charts are FTSE 100, DAX, Dow, Bitcoin, Ethereum, Gold, Aptamer, Bluebird, Critical Minerals, Fiinu, Novacyt, Oxford Biodynamics, Oracle, Shield, Surface Transforms, Winking, WeCap.
Below I summarise the key levels, support/resistance and targets I’m watching — the same commentary I ran through on the video — but written up so you can scan it, digest the setups and follow the trade ideas over the next few weeks.
Market roundup — indices first
Overall the tone remains constructive across the big indices while price action can be slow at times. A couple of takeaways up front:
- Momentum is generally positive — RSI bounces around neutral 50 and the 50-day moving averages have been acting as support in most cases.
- Watch the obvious horizontal levels for breakouts or pinball trading ranges — that’s where we’ll get the next directional clues.
FTSE 100
We’re toying with all-time highs — the big peak was around 9,184 and we saw 9,182 today. To get a proper continuation I want to see a clear break above the 9,200 zone (and clearance of the recent 9,190 resistance).
- Upside target: the top of the rising trend channel from the end of April, roughly 9,400 — my time horizon for that is into the end of next month.
- Support: August support sits just below current levels (around the low 9,100s) and the 50-day moving average is the key downside guard — a drop to the mid-8,800s would be the worst-case rug pull scenario.
“”This is a strong looking market.””
DAX
The DAX is up against a resistance line traced from July — I’d like to see a close above the 24,400 area to unlock further upside.
- Upside target: the top of the rising trend channel from May last year, near 25,400 — a realistic target by the end of next month.
- Support: the 23,000 level is the key downside pivot for now.
- Technical: RSI has rebounded off 50 and the 50-day is rising — that’s constructive for a breakout.
Dow (US)
Messy price action lately, trading either side of 44,000 . Expect a bit of a pinball between the 50-day support (43,700 ) and the record high near 45,000 .
- Upside target: the top of the spring-2022 rising trend channel around 47,400 — possible by the end of next month if the upside momentum resumes.
- Technical: RSI bounces near neutral 50 are acting as a leading indicator for further upside while we stay above the 50-day line.
Cryptocurrencies
Bitcoin
Bitcoin is sitting on the right side of the chart with strong-looking momentum. Key short-term level is an end-of-day close above the post-spike resistance around 121 (the transcript numbers reflect the chart levels I was watching).
- Upside target: the top of the rising trend channel from March, up near 132 — I’m watching for that by the end of this month if momentum holds.
- Support: the 50-day moving average and mid-July support around the low-to-mid 115 area.
Ethereum
“”Ethereum has quickly become the star of the show.””
Traders have been rotating into ETH — it’s already hit the earlier 4,400 target and looks positioned for more upside.
- Upside target: my next reference is ~ 5,500 (I’d flagged 5,550 previously) — that’s the target into the end of next month and it could happen sooner given the current momentum.
- Short-term: as long as ETH stays above the recent 4,400 zone, the path higher remains open.
Gold
Gold has had a small pull after recent strength. The pair of levels I’m watching are the resistance line from April (3,430 ) and the channel floor/uptrend line around 3,330 .
- Near term: slightly negative RSI but only fractionally below neutral 50.
- Best case: break 3,430 before the end of the month and continue higher.
- Worst case: a rug pull to the post-May/June support near 3,230 .
Small-cap and AIM/Aquis picks
Below are the individual stock setups I highlighted — targets, supports and the time windows I’m watching (mostly end of this month or into next month).
Aptamer Group
I’ve covered Aptamer many times — the chart now points to the red resistance projection from July last year near 0.68p in the transcript’s reference frame). Above 0.60p it looks like a done deal and I’d expect that to unfold by the end of this month.
Bluebird
Nice multiple bounces off a rising 50-day and RSI comfortably above 50 — set up for another leg higher.
- Target: a re-test of 2p by the end of next month.
- Caution: a clean end-of-day close above the 1.1p resistance would be confirmation of the breakout.
Critical Minerals
We’ve blown past earlier targets — currently on the third target and looking for our fourth target around 4p
- Near-term resistance: around 3.80 – 4p .
- Support: old February resistance should act as new support near 2.75p .
Fiinu
Fiinu has already broken the top of its rising channel at 14p . Above that opens a fresh leg to the upside.
- Upside target: 23p — a target I’m looking for as soon as the end of this month, while it stays above old resistance at 15p.
Novacyt SA
Normally quiet, Novacyt has shown a flurry to the upside since May. We’ve seen a bear trap below July support and are now looking for further gains.
- Target: top of the channel 56p by the end of next month (and hopefully sooner).
- Key level: clearing the July support/price channel at 39p was the first positive sign.
Oxford BioDynamics
Good news flowed through and the market liked the collaboration with Google Cloud. There’s evidence of selling into strength but the chart still points higher if the right levels hold.
- Upside: a move into the 60s is possible while we stay above 0.4p (the old resistance on the way down).
- Missing confirmation: I want an end-of-day close above the 50-day moving average and RSI > 50 for full conviction.
Oracle Power
Woke up with a flurry — we’ve already hit the top of the recent range (0.03p in the transcript). Above that the next resistance on the way down is 0.046p .
- Timeframe: target by the end of this month, fundraisers permitting (the company tends to be active in that respect).
Shield
Another rising trend channel — looking for 6.75p by the end of this month while we stay above recent support 4.4p .
Surface Transforms
Quiet after the big run from April–June but we’re attempting another push.
- Target: top of the channel / upper parallel from November 1.8p by the end of this month.
- Stretch target: a gap fill up to 2.75p by the end of next month if momentum continues.
- Important: stay above the rising 50-day (currently 1.08p).
Winking Studios
Small name, amusing name — but the chart has cleared a few hurdles. The top of the channel sits around 18p if we can get and hold above the 200-day moving average. The upper parallel could extend up to 25p by the end of next month.
WeCap (recap on a stalwart Aquis name)
WeCap has finally hit the earlier target after a longer-than-expected run and a pullback in June. The previous target was 1.8p while staying above 0.8p , which just about worked.
- Next: the upper parallel of the rising trend channel from last year targets 2.75p by the end of next month.
- Comment: the June rug pull probably cleared out weak hands and now the path looks clearer for those targets.
Conclusion — what I’m watching next
In short: the big indices look constructive while a number of small-caps have compelling chart setups with clear support/resistance and reasonable targets into the end of this month and into next. Key technical confirmations I want to see across the board are end-of-day closes above the marked resistance lines, RSI back above 50 on the breakouts, and continued respect for the 50-day moving averages on pullbacks.
That’s it for today — I’ll be back with more updates tomorrow as price action unfolds.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
