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, Arkle Resources, Alba Mineral, Artemis Resources, Celsius Resources, Eco Buildings, Lexington Gold, Mkango Resources, New Frontier Minerals, Pulsar Helium, Strategic Minerals, Verici DX, Xtract Resources, Zinnwald Lithium
In today’s note, I run through the major indices, the state of crypto and gold, and a fairly large batch of small-cap resource names that are catching my eye. Below, I summarise the technical levels I’m watching, key support/resistance, and the upside targets I’d expect while the charts remain constructive.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Market overview — indices
FTSE 100
The FTSE is retreating from the top of the rising trend channel established since June. The floor of that channel sits around 9,250 and the 50‑day moving average is close by at about 9,265 — ideally we don’t want to see a sustained close below those levels. The RSI is around 53 now and a drop back below the neutral 50 level would signal more weakness.
Immediate support zones: the August–September resistance area (9,350) and the 50‑day/channel floor (9,250/9,265). On the upside, a clear end‑of‑day close above yesterday’s resistance near 9,470–9,480 would be a potential trigger for further gains. For now the tone looks fragile and I’d expect at least a test of lower support.
DAX
The DAX is also pushing lower. The 50‑day line (around 24,000) is the first technical support to watch; below that the channel floor is near 23,600. If we don’t get a decent bounce off the 24,000 zone the market looks set to probe those lower levels. The RSI is slipping below the neutral 50 mark, which makes the upside (25,000–26,000 territory) look a long way off in the near term.
Dow
The Dow managed a rebound off its 50‑day moving average — that 50‑day line is the near‑term support to keep in mind at roughly 45,500. As long as that holds there’s scope to push toward the top of the channel (as high as 48,000 by the end of next month). On the downside I’m not currently expecting worse than the 45,000 zone (July resistance, which could become support).
Cryptocurrencies
Bitcoin
Crypto treasury companies are under pressure and moving in sympathy with Bitcoin today. Bitcoin is back at the floor of the rising channel from March (around 110 on the chart I’m watching). A decisive end‑of‑day close below $111 would increase the odds of a move to $107 and then toward the 200‑day moving average — we haven’t closed below that MA since April. The RSI has failed the 50 level which suggests downside risk even if a bounce follows.
Ethereum
If Bitcoin catches a cold, Ethereum often gets the worst of it — and the chart reflects that. We’re sitting on the floor of the channel and below the 50‑day line (around 43.48). A break and close below there would imply a test of August support toward 33.50, which would be a significant pullback.
Gold
Gold continues its strong run — it’s essentially on a lap of honour and rapidly approaching the resistance projection from this time last year. My near‑term target is now $4,200, which I’d expect before the end of this month (previously I had that pencilled in for the end of next month). The market looks constructive while it remains above the recently broken resistance at roughly 4,070.
Key technical themes to watch
- 50‑day moving averages as first‑line near‑term support on indices and many resource names.
- RSI 50 level — multiple rebounds through 50 have preceded breakouts in several small caps; a failure back below 50 often signals a more extended pullback.
- Channel floors and previously broken resistance lines acting as new support — these remain central to the trade plans outlined above.
Conclusion
Short term, the big indices look a touch fragile with multiple 50‑day tests coming up; gold remains the standout bullish story with an accelerated target toward ~4,200. Crypto needs to hold key channel floors if a sustained recovery is to take place — otherwise the 200‑day moving averages become the next objective. On the small‑cap resources front, we’ve got a healthy list of names with clear technical rules: maintain the stated support levels and look for the upside targets I’ve noted.
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.
