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, Blencowe, Cadence, Ceres Power, Empire Metals, Mast, Oriole, Renalytix, Skillcast
In today’s charting round-up I take a look across the major indices, crypto, gold and a handful of small‑cap bulletin board stocks that caught my eye. This is a concise technical snapshot — levels, key support/resistance, RSI behaviour and where I’m looking for price to be by the end of next month.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Market overview — the big picture
The pulse of the market is upbeat but cautious. Broad indices remain inside rising trend channels, RSI readings are doing the heavy lifting in places, and the risk is still a short-term “rug pull” back to channel floors if momentum fades. Below I break out the levels I’m watching.
FTSE 100
Still trading near the floor of a rising trend channel around the 9,210 area. We’ve seen RSI rebounds around the 50 level earlier in the week, but price progress has been modest.
- Immediate technical combo: above the 50‑day line (9,152) — that keeps the bulls in control.
- Upside: a break through the recent record high (9,357) and a run toward the top of the channel around 9,520 by the end of next month.
- Downside: failure to hold could return price to the month’s range floor toward 9,100.
DAX
Dull price action, but we’re still inside the longer rising channel from April. The missing piece is RSI — still marginally below neutral 50 at 49.
- Channel floor near 23,600. 50‑day line sits just below 24,000.
- Upside target: the top of the channel at 25,800 by the end of next month — but we need a break above the 50‑day line first.
- Positive technical: a bear‑trap gap reversal earlier in the week has helped repair confidence.
Dow
The Dow has been the leader recently — trying to push through to the top of its channel.
- Key upside target: 47,800 by the end of next month while price stays above recent support around 45,700.
- RSI is comfortably above the neutral 50 and finding support around the mid‑50s — that’s constructive for fresh highs.
- Use the 50‑day line (44,900) as a putative support zone for anyone looking to add exposure.
Cryptocurrencies
Bitcoin
Relatively unspectacular week but better than some. Bitcoin is stuck around 11,718 — not a hugely meaningful level in itself, but it stalled there.
- Key near term: an end‑of‑day close through 11,800 would be constructive.
- Upside target: 13,200 by the end of next month if momentum returns and the channel holds.
- Downside: the floor of the rising channel sits around 11,100 — that’s the immediate support to watch for a “rug pull”.
Ethereum
Some hope that ETH might outshine Bitcoin in speculative flows, but it hasn’t yet. It is, however, in a rising channel since July.
- Channel floor: 4,400. 50‑day line around 4,323 is a sensible buy zone for limit orders.
- Upside target: 5,500 by the end of next month while RSI stays above neutral (current RSI 55).
- If there’s a dip, look for a bounce close to the 50‑day line.
Gold
Gold has been straightforward recently but has dipped back toward 3,600. Support from last week remains in place.
- Support: 3,600. 50‑day/near‑term support intact.
- Upside: expecting the top of the channel around 3,850 by the end of this month.
- Downside worst case (for now): the April low near 3,511.
Selected small‑cap stocks
It’s a thin harvest today — a few names showing interesting set‑ups. As always, use your own risk management and watch the levels.
Blencowe Resources
- Current position: rising; trading above the 4.75p support zone.
- Targets: short term 6.1p (post‑2023 resistance), with a stretch target of 8p by the end of next month (2021 resistance).
- Key breakout: 5.5–6.0p. RSI shows an uptrend which supports the breakout case.
Cadence Minerals
A well‑deserved revival — V‑shaped recovery and a bull flag/triangle structure.
- Technicals: RSI 50+ rebound; minimum target 4p (upper parallel of the broadening triangle) — likely sooner than later.
- Near resistance: 4–4.5p. Recent news (Aztec plant restart, cost reductions at Mappa) is supportive.
Ceres Power
A clean rising trend channel in play.
- Channel top near 174p by the end of next month if momentum continues.
- Base/support roughly 125p; a tighter stop could be 130p ahead of a move toward 170p+.
- Recent blockage around February resistance (155p) — clearing that would help the bullish case.
Empire Metals
Bouncing back after a nasty pull — “Landon” situation in the background but the chart has recovered.
- Key support: holding above the rising 50‑day line (39p).
- Targets: initial 50p (already hit as a prior objective), then a run toward 70–72p by the end of next month if the 50‑day stays intact.
- RSI is back above neutral 50 — another positive sign for the recovery thesis.
Mast (masked rug‑pull case)
Another stock that suffered a sharp RNS‑triggered drop. The technical call is that this could reverse.
- Price sits above the 50‑day line (101p).
- Initial target: the prior support-turned-resistance around 133p. Beyond that there’s scope to see the shares revisit much higher levels (even 200p+) if momentum and sentiment recover.
- Watch corporate news carefully — the drop was linked to a poor RNS and “unsolicited articles” commentary which remains a sentiment risk.
Oriole Resources
Simple and straightforward set‑up.
- Support: above 0.35 (35p).
- Target: at least 0.50 (50p) by the end of next month while the support zone holds.
- RSI turning above neutral 50 is supportive for the upside.
Renalytix
Good corporate news earlier in the week triggered a spike toward 14p. Price has since pulled back but the structural picture is constructive.
- Technical base: above the 200‑day line, currently around 8.5p.
- Targets: aiming for 14p by the end of next month, with upside to 18p if momentum continues.
- Both 50 and 200‑day lines are rising and approaching a golden cross — historically a bullish phase.
Skillcast Group
A very clean channel and the kind of step‑formation I like: vertical, sideways, vertical, sideways. Recent update was strong.
- Support: 50‑day moving average around 54p.
- Target: minimum 80p by the end of next month while the 50‑day holds.
- Company update showed positive revenues and subscriptions — supports the chart structure.
Conclusion
Overall, the market backdrop is constructive — indices sitting in rising channels, with the Dow showing particular strength. Crypto and gold are holding key technical supports, and a handful of small caps are showing well‑defined technical targets. The usual caveat applies: watch the 50‑day lines and channel floors for the “rug pull” risk, and keep stops in place if you’re buying into any of these setups.
More updates over the weekend — I’ll be watching these levels and the RSI action closely.
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.
