Zak Mir takes a charting look at some of the most closely followed small caps on the London Stock Exchange. Today’s charts are the FTSE 100, DAX, Dow, Bitcoin, Ethereum, Gold, WTI Crude Oil, Alkemy, Aptitude, African Pioneer, Delta Gold, Energy Pathways, Renalytix, Reveille, Time To Act, The Mission Group.
The main theme across the charts is simple enough: several markets have found support after a sharp wobble, but most still need to clear their 50-day moving averages before the upside cases can really get going.
Oil remains the main driver for financial markets, while the latest interest-rate move has created the usual pressure on gold and the Dow. Elsewhere, Bitcoin and Ethereum are holding their ranges remarkably well, and some interesting small-cap setups are beginning to emerge.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
FTSE 100: A Bounce From Channel Support
The FTSE 100 has finally done what was needed, bouncing from the floor of its rising trend channel dating back to March. That support zone came in around 10,600. There were one or two minor probes slightly underneath, but the level has broadly held.
The next major test is an end-of-day close above the rising 50-day moving average at 10,745. Get that, and the initial upside resistance is the descending red trend line from late July, near 10,850.
Above 10,850, the more ambitious target is the top of the rising channel at roughly 11,100 by the end of next month. It may look optimistic, but that is where the channel points.
The bearish alternative is straightforward. A sustained break below 10,600 would bring the 200-day moving average around 10,400 back into view, along with early-July support.
The encouraging point is that the relative strength index, or RSI, has pushed back above the neutral 50 level. With the US rate decision out of the way, a pause from the Bank of England could be enough to help the index recover further, even with oil prices remaining elevated.
DAX: Still Needs to Reclaim the 50-Day Line
The DAX has bounced from just beneath the floor of its rising channel, which is roughly around 25,300. Trend channels are not carved in stone, so there is always a degree of adjustment involved, but the support area is clear enough.
The first resistance is the 50-day moving average near 25,700. An end-of-day close above that level would improve the outlook considerably.
Afterwards, there is resistance around 26,000, before the top of the channel becomes relevant above 26,500. The RSI remains below neutral 50, so there is still some technical work to be done before getting too carried away.
Dow Jones: Interest-Rate Rug Pull or Something More Serious?
The Dow bore the brunt of the interest-rate rise, but the decline looks more like a pre-rate-decision rug pull than the start of a major breakdown.
If the previous session’s low proves to be the low of the move, the initial recovery target is the 52,000 area, which had been September support. Above that, the 50-day moving average near 53,000 becomes the next substantial hurdle.
It will need a bit more work around that 50-day line, but a rebound towards 52,000 would make technical sense in the first instance.
Bitcoin and Ethereum: Range Trading With Upside Potential
Bitcoin needs an 82,000 close
Bitcoin is still recovering from the upset surrounding the Clarity Act, but it has not fallen as heavily as some may have expected. For now, it remains a range trade between the mid-70,000s and low-80,000s.
The key bullish trigger is an end-of-day close above 82,000. That would suggest a move towards the post-February triangle target around 94,000, potentially by the end of next month.
The upside case remains valid while Bitcoin holds above its 50-day moving average, currently around 72,200.
Ethereum holds its own range
Ethereum has a similar setup, holding a range between roughly 2,350 and 2,580. The preferred scenario is a break through the top of that range.
That would open the way towards the top of the February rising trend channel near 2,900 by the end of next month. The key support level is the 50-day moving average at approximately 2,230.
Gold: Support Near the 50-Day Moving Average
Gold had its own rug pull, which was logical enough after interest rates moved higher. Higher rates tend to support the dollar, and a stronger dollar is generally not helpful for gold.
The chart channel is still being adjusted, but the important support zone appears to be in the right place. The floor of the channel and the 50-day moving average converge just below 4,300, with the 50-day line at around 4,282.
As long as gold can hold that area on an end-of-day closing basis, the potential recovery target is around 4,540, where the 200-day moving average currently sits.
WTI Crude Oil: The Big Market Variable
Crude oil remains the main issue hanging over the wider financial markets. The price has weakened around the psychologically important $100 level.
WTI crude is now closer to $97 on spread bets, rather than the $102 to $103 area. Below $103, the bearish possibility is a move towards $93.
That $93 zone matters because it marked initial September resistance and also July resistance. If you are bearish on crude, that is the level to watch.
Small-Cap Share Setups to Watch
- Alkemy: Gap, 50-day support and a 390p target: Alkemy has produced the sort of setup that tends to attract attention: an unfilled gap to the upside and a rising 50-day moving average. The shares then moved ahead of news that the government is putting £18 million into the company. The move came close to the 390p target, reaching around 385p. After a sharp rise from below 300p earlier in the week, some profit-taking is hardly shocking. Near-term support may emerge around 330p. The preferred view remains that 390p can be reached after any consolidation.
- Aptitude Software: Broadening triangle points to 270p: Aptitude Software has a broadening triangle in play. The top of that formation points towards 270p. The key condition is holding above recently broken resistance at around 240p. Stay above that level and 270p becomes the near-term chart objective.
- African Pioneer: Wait for the 2.6p triangle break: African Pioneer has been progressing quietly, and the immediate chart is now dominated by a symmetrical triangle. Older target lines can largely be left behind for the time being. The significant signal would be an end-of-day close above 2.6p. That would represent a breakout from the triangle and point to a move through the old resistance zone around 3p, which dates back to 2023. The broader upside view remains intact while the shares hold above channel support near 2.25p.
- Delta Gold: Clear 145p for the next signal: Delta Gold has been trapped in a broad range between approximately 120p and 190p. The key near-term issue is whether it can reclaim and hold above the 50-day moving average at 135p. For a cleaner bullish signal, a move above 145p is needed. That level marks initial September resistance.
- Energy Pathways: A Leaky Stock With a 10.75p Objective: Energy Pathways is one of those notoriously leaky shares, so it is worth treating the chart with the appropriate caution. There has been no news, but the technical action has improved. The shares have broken resistance around 8p, and the resulting setup points towards 10.75p by the end of next month, possibly sooner. The chart is particularly interesting because it shows an unfilled gap to the upside followed by support above a rising 50-day moving average. It is very similar to the earlier Alkemy setup. Whether the same type of news-driven follow-through appears remains to be seen.
- The Pebble Group: 80p remains the destination: The Pebble Group has also had an unfilled gap to the upside, followed by a push through the 50-day moving average and a decent recovery. The target here is 80p by the end of next month, provided the shares remain above recently broken resistance at 62p. That is the minimum upside expectation from the current chart structure.
- Renalytix: A textbook saucer-shaped reversal: Renalytix has become something of a star pupil from a charting perspective. It did not necessarily look like an obvious winner at the outset, but the price action has been unusually cooperative. The chart shows a classic saucer-shaped reversal, with targets stepping up through:
- 3p as the first target
- 4.5p as the next resistance area
- 5.75p as a further objective
- 7.5p as the final target
The bullish structure remains in place while the shares stay above the old target zone around 5.5p.
- Reveille Resources: An RSI jump worth noticing: REV has spent a couple of months bumping along the bottom, but there is now an interesting development in the momentum indicator. The share price itself has not moved dramatically, yet the RSI is beginning to jump with the price action. That can be an early sign that something is starting to stir. The technical trigger remains an end-of-day close above the 50-day moving average at roughly 6.25p. If that occurs, the next potential target is the 200-day moving average near 11.5p.
- Time To Act: A Possible U-Shaped Turnaround: Time To Act is an obscure one and has pulled back, but the chart still suggests a possible U-shaped turnaround. The shares need to remain above 20p, which acts as neckline resistance. If that level holds, the initial upside potential is towards 40p. It is one to keep on the radar rather than chase blindly.
- The Mission Group: Strong Channel Setup Towards 35p: The Mission Group has been trading within a wide rising trend channel since last year. It is currently consolidating sideways above rising 50-day and 200-day moving averages, which is a constructive look. As long as the shares remain above 23p, the top of the channel points towards 35p, potentially by the end of next month.
The Levels That Matter Most
The broad market picture is one of recovery attempts rather than outright clean breakouts. The FTSE 100 and DAX need to deal with their 50-day moving averages. Bitcoin needs 82,000, Ethereum needs a range breakout, and gold needs to hold its 4,282 to 4,300 support zone.
For individual shares, the recurring theme is equally clear: look for closing breaks above resistance, rising moving averages, and gap-up formations that remain unfilled. Those are the ingredients behind the stronger setups, but levels matter. A target only remains useful while the stated support holds.
All chart levels are technical-analysis observations, not investment advice. Markets can reverse sharply, particularly around interest-rate decisions, commodity-price moves and company news.
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.
