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, Ajax, Contango, EnergyPathways, Eagle Eye, Fusion Antibodies, Genincode, Halo Minerals, Kooth, Landore, Medpal, McBride, Orcadian, Shield, Sunda, Valereum.
The market picture remains constructive across several major indices, cryptocurrencies, commodities and selected UK small caps. The key theme is straightforward: a number of charts are holding above rising moving averages and former resistance levels, leaving room for another move higher.
That said, there are obvious event risks. Federal Reserve commentary and the Jackson Hole backdrop could still prompt a sharp pullback, so the important thing is to know the support levels as well as the upside targets.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
Major Indices: FTSE 100, DAX and Dow
FTSE 100: Holding the Rising Channel
The FTSE 100 remains inside a rising trend channel, with the channel base currently around 10,750. That is the immediate support area for the next session or two, although a dip towards the rising 50-day moving average at 10,692 cannot be ruled out.
The constructive feature is the RSI uptrend line based around the neutral 50 level. It is holding for now, suggesting that dips towards the 10,700 area may continue to be treated as buying opportunities rather than the beginning of a wider breakdown.
If the channel remains intact, the index could work its way towards the upper channel area near 11,100 by the end of next month. At present, the setup is more mid-range than explosive, with the RSI rebound providing the main bullish cue.
DAX: The Strongest of the Big Three
The DAX has been the standout among the major indices. It has held its gap, pushed through the 50-day moving average and retained former resistance from last month at 25,900 as support.
While the index stays above that level, the immediate target is the top of the channel around 26,800. A more optimistic outcome would take the DAX towards the upper parallel of the rising channel at approximately 27,400 by the end of next month.
The chart has the look of a market that is stronger in the rear-view mirror. Previous resistance has been cleared, the moving-average picture has improved, and the price action has remained resilient.
Dow Jones: Breakout Potential, but Watch the Fed
The Dow has made a modest break through resistance from the start of last month at 53,300. Holding above that line opens the way for a retest of the year’s best levels around 54,500.
The upper boundary of the rising channel from April points to a best-case target near 55,600 by the end of next month. An RSI around 55 leaves the index in a favourable position for further gains without looking stretched.
There is, however, potential for a “rug pull” if central-bank commentary unsettles risk assets. A downside move could bring 52,500 into play, particularly around Federal Reserve developments and the usual Jackson Hole volatility.
Cryptocurrency Charts: Bitcoin and Ethereum
Bitcoin: Consolidating Above Former Resistance
Bitcoin has done a respectable job of retaining the gains made last week. The current pattern looks like a mid-move consolidation above 78,000, which had previously acted as resistance on the way down.
As long as Bitcoin remains above that level, the first upside objective is a retest of 83,000, an area that marked resistance in May. Beyond that, the top of the broadening triangle from February comes in around 93,000.
That higher target may look ambitious for the end of next month, but the chart remains viable while the latest flag support holds. Initial support sits between 78,000 and 75,000, with 75,000 representing the floor of the latest flag formation.
Ethereum: Bull Flag and a Potential Golden Cross
Ethereum is broadly following Bitcoin, though with a slightly less convincing bull-flag setup. The important breakout level is the top of the flag at 2,550.
A sustained move above 2,550 would put the top of the rising trend channel from February, around 2,900, into focus. Both the 50-day and 200-day moving averages are rising, with a potential golden cross likely within the next week or two.
That improving moving-average structure gives the Ethereum chart a more constructive medium-term tone.
Gold and WTI Crude Oil
Gold: Recent Support Could Mark the Low
Gold has dipped towards its 200-day moving average, but the latest support around 4,550 looks increasingly important. Provided that level holds, the recent weakness may prove to be the low before another push higher.
The first upside target is 4,800, which was resistance in April. In a stronger move, the upper boundary of the rising trend channel from June points towards 5,200 by the end of next month.
If risk appetite is hit and there is a sharper retreat, the 200-day moving average around 4,527 is the main downside level to monitor.
WTI Crude Oil: Mixed Supply Signals, Constructive Chart
Crude oil continues to receive mixed messages from the supply backdrop, including uncertainty around flows through the Strait of Hormuz. From a chart perspective, though, oil has bounced above rising 50-day and 200-day moving averages.
That recovery supports an initial move towards $86, the top of the falling trend channel. A more bullish development would point towards the top of the rising June channel at around $100, although that remains some distance away.
Near-term support lies in the $78 to $79 zone, where the 50-day moving average sits around $79 and the 200-day average is close to $78.29. Holding above the neutral 50 RSI level remains another positive sign.
SpaceX: Break Above the 50-Day Moving Average
SpaceX has been relatively quiet, but the latest price action offers a possible breakthrough. The shares have moved above the 50-day moving average at 138.58.
Staying above that average brings the top of the falling trend channel near 143.3 into play over the coming days. A clean break above that area would leave relatively little chart resistance before the 200-day moving average around 155.
The RSI has bounced twice from the neutral 50 level in recent days, which is a positive sign even if the broader price action has lacked urgency. Should the shares fall back below the 50-day line, the 130 area looks like the more attractive zone for a potential dip-buying opportunity.
UK Small-Cap Share Charts
- Ajax: A Second Attempt at the 200-Day Line: Ajax is testing its now-rising 200-day moving average for a second time. It needs proper price action above that line to confirm a more meaningful recovery. While the shares stay above broken resistance around 5.75p, the best-case target is the top of the triangle formation from March at 10p by the end of next month.
- Contango: Gap Higher After the Fundraise: Contango has secured its £5 million fundraise and the chart has responded with a gap higher above a rising 50-day moving average. The previous trajectory has been difficult, but the current setup is improving. While the shares remain above recent broken resistance at 0.65p, the broadening triangle from June last year gives an upside target near 0.93p.
- EnergyPathways: A Potentially Leaky Stock: EnergyPathways is on the list because the price action has the feel of a stock where buyers may be anticipating something. It has moved above the 50-day moving average at 7.1p. The first target is post-June resistance around 8.22p. Above that, a more substantial move could take the shares to 10.5p, especially if meaningful company news arrives. The upside case remains in place while EnergyPathways holds above the 200-day moving average near 6.3p.
- Eagle Eye: Waiting for a Bigger Announcement: Eagle Eye has not yet delivered decisive action, but it remains worth monitoring in case a significant announcement changes the picture. While the shares remain above the rising 50-day moving average at 477p, the top of the channel near 552p is the target for the end of next month.
- Fusion Antibodies: Breaking Recent Resistance: Fusion Antibodies has pushed above recent resistance at 11.35p. The breakout places the top of the broadening triangle at approximately 17p into view by the end of next month. The shares are showing enthusiasm, and the technical focus is whether the breakout can be maintained rather than immediately reversed.
- Genincode: Keep Above the Gap Floor: Genincode saw an early spike following decent news, although the initial follow-through has not been especially impressive. The key technical level is the gap floor at 0.96p. Holding above that level creates the possibility of a move towards range highs around 1.35p. The RSI has produced a good double bounce around 50 and the 50-day moving average is rising, both of which suggest there should at least be an attempt to break higher.The 0.95p region looks more interesting as an entry area than chasing the earlier spike.
- Halo Minerals: Signs of Accumulation: Halo Minerals has been the subject of accumulation commentary, and the chart supports a constructive view. The rising trend-channel base points towards a potential move to 12p, ideally during the first half of September. The setup remains positive while the shares hold above the rising 50-day moving average at 9.9p. The RSI has also bounced well above the neutral 50 level.
- Kooth: Vertical Move Through Resistance: Kooth has delivered a two-day vertical move through recent resistance at 169p. Staying above that breakout area would put the top of the rising trend channel around 200p in play over the next week or two. Should the breakout develop further, the longer projection points towards 250p by the end of next month. That is the more ambitious scenario, but the momentum is clearly with the shares for now.
- Landore: A Gold Play Showing Technical Improvement: Landore has not previously covered itself in glory despite its gold exposure, but the latest chart action looks more significant. The shares are moving sideways above a rising 50-day moving average, a pattern that can often precede a larger move. The initial objective is around 2.4p over the next week or two, with the 200-day moving average near 2.5p as the target by the end of next month.
- Medpal: The 200-Day Moving Average Is the Barrier: Medpal is edging higher while the market awaits the next company update on sales. The immediate challenge is the 200-day moving average at 4.25p, a level the shares have not properly cleared since November. A sustained move above that line would target the top of the rising trend channel at 5.75p by the end of next month. In the meantime, dips towards the 50-day moving average at 3.75p are regarded as buying opportunities.
- McBride: Above £2, the Trend Steepens: McBride has produced a decent announcement and reached the top of its previously identified channel around £2. A sustained move above £2 would bring a steeper rising resistance-line projection into play. That projection points towards £2.30 by the end of next month, potentially sooner if momentum remains strong.
- Orcadian: North Sea Policy Remains the Driver: Orcadian’s prospects remain closely tied to the political outlook for the North Sea. If more constructive signals emerge, the company could be a beneficiary. From a charting perspective, the key requirement is holding above the 200-day moving average at 15p. Above that, the top of the channel and range around 25p becomes the target by the end of next month.
- Shield: Breakout From the Falling Channel: Shield has broken out of its falling trend channel at 5.75p. That puts the 200-day moving average around 8p in sight by the end of next month. The preferred scenario is for the shares to avoid falling back below the 50-day moving average at 5.4p. A return beneath that level would weaken the breakout case.
- Sunda: Strong Bounce From a U-Shaped Base: Sunda has shown surprising strength. The immediate target is the top of the falling trend channel around 3.36p. Above 3.36p, the chart opens up towards 4.6p by the end of next month. The recovery began with a bounce from a rising 50-day moving average earlier in the month and has since formed a U-shaped support area around 2p. That U-shaped base is usually a strong signal on a charting basis and helps explain the current improvement in momentum.
- Valereum: One of the Stronger Setups: Valereum has not yet travelled very far, but the setup looks particularly encouraging. The shares are consolidating sideways after an unfilled gap higher, while remaining above a rising 50-day moving average. That combination has historically been one of the better technical setups, particularly when assessing the potential scale of the next move. The top of the rising trend channel sits around 4.1p and could be tested in the coming days.
What Matters Across These Charts
The broad technical message is not complicated. A large number of instruments are sitting above rising 50-day moving averages, while former resistance is increasingly being tested as support. Those are the conditions that can support trend continuation.
Still, price targets are only valid while the supporting structure remains intact. The levels that matter most are:
- Former resistance: A break above it is useful, but holding above it is more important.
- Rising 50-day and 200-day averages: These offer a quick guide to whether the underlying trend remains constructive.
- RSI around 50: Rebounds from neutral RSI territory can signal that buyers are returning without the market becoming overextended.
- Gap floors and channel boundaries: These often provide practical levels for judging whether a breakout is holding or failing.
For further background on how the relative strength index is used in technical analysis, neutral readings around 50 are often watched as a dividing line between improving and weakening momentum.
The coming sessions will show whether these rising channels and breakout levels can survive macro noise. For now, the bias remains towards buying well-supported dips rather than assuming every short-term pullback marks the end of the move.
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.
