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, Active Energy, Altona, Audioboom, Ferrexpo, Hemogenyx, Harena, ICFG, Keras, Kefi, Pantheon, Roadside, SolGold, Solvonis, Surface Transforms, Tavistock.
In this update I run through the majors, cover crypto and gold, then highlight a large selection of small caps and miners that have been active this week. Below I summarise the technical levels I’m watching and the price targets I’m pencilling in for the coming weeks.
Market outlook: WS100, DAX and the Dow
WS100 (the FTSE 100 proxy): we briefly pushed into new record territory at 9,222. To keep the bullish case intact we need a clean end-of-day close above 9,200 so we can target as high as 9,400 by the end of next month. Key downside supports are the initial August support at 9,027 and the 50-day moving average around 8,955. Ideally price stays within the rising trend channel built around the 9,130 area.
DAX : a constructive break above that stubborn July resistance near 24,400. If we hold above that level the next obvious target is the top of the channel, circa 25,400, probably by the end of next month. Watch the 50-day line (rising, roughly 23,900) and the RSI which has rebounded to 50 — an end-of-day close above 24,400 would be the best confirmation today.
Dow : the index is touching record highs around the 45,000 mark. I want a proper close above that level to pencil in the rising channel top from May last year near 47,600 by the end of next month. The 50-day is sitting near 43,800 — a break below there would be a warning (worst case testing the 200-day around 42,900) — but on balance I expect the market to remain above the 50-day and push into the 47k+ area unless geopolitical events derail things.
Crypto: Bitcoin and Ethereum
Bitcoin showed a frustrating bull-trap punch-through around the 123k level over the last couple of days — price made a higher high while the RSI showed lower highs (bearish divergence). Despite that, while price holds above the $115k floor (the March channel base and the 50-day moving average), I remain constructive and still expect upside towards roughly $132,000 by the end of next month if momentum returns and RSI climbs back into the 50s.
Ethereum has been the week’s star — holding most gains and staying on the right side of $4,500. If that holds I see scope for a fresh leg up to $5,500 by the end of next month (upper parallel of the rising channel from March). The worst-case short-term pullback would be toward the old December resistance near 4,100, but that’s not my base case right now.
Gold
Gold remains disappointing. The April triangle/continuation setup hasn’t resolved cleanly and price sits close to the floor of the rising April channel (around $3,330). The near-term risk is a test of late June support near $3,223. Conversely, a break above the April resistance line ($3,430) could target $3,800 by the end of next month. At present the structure feels tenuous and needs a decisive breakout or breakdown to give a clear directional edge.
Small-cap watchlist: headlines and technicals
Below are the short notes and technical levels I discussed for several small caps—these are my personal reads from the charts. In short: look for end-of-day closes above the levels mentioned and RSI/50-day confirmations to support the upside targets.
- Active Energy– Reaction to battery storage news produced a spike through July resistance (0.22p) then a sharp intraday pullback. The key level is the gap floor around 0.14p: staying above that on an end-of-day close keeps the case for a move toward the top of the mildly descending channel (0.33p) by the end of next month. I want to see RSI back above neutral 50 for conviction.
- Altona– Positive reaction to rare earths supply tension (China tightening exports) saw a gap higher. The short-term target is the top of the range, around 2.2p+, well before the end of next month. Support/floor of the rising trend sits near 1.4p.
- Audioboom– Blink-and-you-missed-it move through recent resistance. A clean end-of-day close above the May peak (£4.12p) keeps a £5 target in scope, possibly as soon as the end of this month. The rising 50- and 200-day lines and the run-up to a potential golden cross provide added structural support; immediate support is the day line around £3.77–£3.78p.
- Ferrexpo– Acts like a barometer here: it bounced from the 50-day (48p) and I still expect the gap to be filled up towards 62p, even if there’s some wobble. Note the 200-day is starting to fall — that’s a caution — but the recent RSI and 50-day rebound are bullish signs.
- Hemogenics– After years of struggle, fundamentals look a touch brighter and the technicals are more convincing than previous rallies. As long as there’s no end-of-day close back below the gap (142p) and with RSI above neutral 50, a move to the top of the range (180p) is plausible.
- Harena– With critical rare earths in focus, Harena is on the radar. The chart shows a broadening triangle with multiple support points above a rising 50-day line and three RSI rebounds above 50. My minimum target is 2.2p by the end of next month given the setup.
- ICFG– Another low-profile stock making a renewed push. We bounced above the rising 50-day and cleared July resistance (35p). The short-term target of 45p has already been reached; I’m looking for further upside to 65p by the end of next month while price holds above the breakout level.
- Caris– Building a rising trend-channel base, showing strong, staircase-style candles over the last couple of weeks (opens at lows, closes at highs). That pattern is one of the stronger short-term structures—targeting roughly 2.20p+ by the end of next month while support on the way down sits near 1.4p on an end-of-day basis.
- Kefi– Despite some cynicism, the shares have done their job: an unfilled upside gap to start the week that has held. Key resistance is 0.70p and a crucial support is 0.60p—holding above that keeps a channel-top target near 0.80p by the end of next month. Note the double RSI 50 rebound which adds momentum confidence.
- Pantheon– Not on my radar initially, but the chart shows an RSI uptrend and a rising 50-day. If price stays above the 50-day (24p) the channel top near 33p could be reached by the end of this month. Also showing a double RSI 50 rebound.
- Roadside Real Estate– Several readers asked about the target: it remains the top of the rising trend channel from September 2023, currently approaching the 64p area. That outcome is achievable before the end of next month, possibly sooner, as long as we stay above the 50-day moving average (48p).
- SolGold– Strong bull-flag breakout and we hit the earlier 11–12p. Above recent resistance at 14p on a decent weekly close, the next target is 18p by the end of next month — maybe sooner given today’s strong near-surface intercept Tandeama news.
- Sonus– Shares continued to rise following a recent company interview. I’m looking for 0.45p as soon as the end of this month while price remains above 0.3p, bolstered by another RSI 50 rebound.
- Surface Transforms– We’ve revived the April–June rally and hit the second target at 1.8p (closed the day above 1.80p). The best-case next target is around 2.75p next month — that figure comes from the top of the April 2024 gap.
- Tab Stock Investments– Quietly constructive: rising 50- and 200-day moving averages and a breakout from a near-term range. Initial target 6.4p, and the upper parallel of the rising channel could take it toward 9p by the end of next month while we hold above 5p.
Key technical themes
- End-of-day closes matter. Many of these setups require a clean daily close above breakout levels to make the targets credible.
- 50-day moving average as support. Across indices and many small caps the rising 50-day is the first line of defence; a hold above it keeps the bullish case alive.
- RSI 50 rebounds. Several stocks have shown RSI rebounds into or above neutral 50 — I treat those as leading indicators of follow-through when they accompany price breakouts.
- Gaps and gap-floors. For a number of small caps the gap floors are key risk levels. Staying above them typically keeps higher targets valid; a daily close below usually weakens the case.
Conclusion
In short: the majors look constructive while holding critical moving averages, cryptos have mixed internals but remain bullish if key support holds, gold is stuck in a frustrating structure, and a raft of small caps and miners have set up interesting breakout opportunities — provided the usual confirmations (EOD closes, RSI and 50-day behaviour) appear.
I’ll post more updates over the weekend — keep an eye on end-of-day closes and RSI readings if you’re trading these names. Thanks for reading and stay tuned.
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.
