Zak Mir takes a charting look at some of the most closely followed small caps on the London Stock Exchange. Today’s charts are for the FTSE 100, DAX, Dow, Bitcoin, Ethereum, Gold, WTI Crude Oil, Avacta, Cloudbreak, Cizzle, Delta Gold, Filtronic, Greatland, GSTechnologies, JD Sports, ITM, Kendrick, Novacyt, Synthomer, S4, Truetide, and Wildcat.
The market mood is mixed heading into the close of the week. Some indices are wobbling at key support, crypto is playing a slightly awkward game of bluff, gold and oil have both run into resistance, and a surprising number of smaller UK stocks still look technically constructive despite the usual Friday noise.
There is quite a lot going on, so the easiest way to handle it is market by market, then stock by stock, focusing on the levels and setups that matter.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
FTSE 100: Sitting on the floor of the channel
The FTSE 100 is not exactly in celebratory mood. It is sitting around the floor of a rising trend channel that has been in place since October, with support coming in around 10,200.
That level is not exact to the point, and trendlines always have a bit of give in them, but the broad message is straightforward. While the index is holding around 10,200, there is still scope for a rebound back towards the 50-day moving average at 10,380.
There were two failures midweek, so this is not a clean chart in the very short term. If 10,200 gives way properly, the next area of interest is the congestion zone from late March, heading towards 10,000.
Even so, the underlying feel here is that the market is still a bit too strong for a full retreat to that zone unless selling really gathers momentum.
DAX: Bull trap and gap reversal spoil the picture
The DAX has generally been in better shape than the FTSE recently, but not today. The chart has turned messy, and not in a good way.
What stands out is a two-day bull trap combined with a gap reversal. That usually has negative implications, and it suggests the market may now need to test:
- The 200-day moving average at 24,100
- The 50-day moving average at 23,800
If the bulls want to regain control quickly, the level to reclaim is 24,800, which marks the old April peak. A close back above that would reopen the path towards the highs. Until then, this is one of those charts where the technical damage has been done and needs repairing.
Dow: Strong undertone, but still trapped below 50,000
The Dow has decided that charging through 50,000 might be a bit premature. For now, it remains rangebound between roughly 48,850 and 50,000.
If the market can deliver a proper break and close above 50,000, the next upside projection is towards 52,500, which is the top of the triangle formation that has been building since November.
That target looks some distance away at the moment, but there are still constructive features under the bonnet:
- The 50-day and 200-day moving averages are both rising
- There is an unfilled upside gap from Wednesday
That gap is significant. Unfilled upside gaps often signal strength rather than exhaustion, so despite the hesitation below 50,000, the broader setup still suggests the market is leaning positive.
Bitcoin: Bluffing below the 200-day average
Bitcoin looks like a market trying to decide whether the bear market rally is over or merely pausing.
The issue here is the failure below the falling 200-day moving average just under 83,000. That is a concern, because it shows the market was not quite ready to force its way through longer-term resistance.
On the other hand, Bitcoin is still holding well above recent support at 77,000. While that remains intact, there is still a fair chance of another attempt at the 200-day line.
The key levels are:
- Support: 77,000
- Initial upside target: just under 83,000
- Best-case upside: 90,000, which was resistance on the way down
- Risk on the downside: 73,400, the 50-day moving average
So this is still alive, but it is not a clean breakout chart yet.
Ethereum: Weaker than Bitcoin, and that matters
If Bitcoin is bluffing, Ethereum may be giving the game away a bit.
Ethereum failed below the top of its rising recovery channel and did so well below the 200-day moving average at 2,677. It also stalled around recent resistance near 2,400.
That leaves the chart vulnerable to a test of the 50-day moving average at 2,225. More worrying still, RSI has slipped below the neutral 50 level, which raises the possibility of a move down towards the floor of the channel around 2,080.
The divergence between Bitcoin and Ethereum is notable. When Ethereum underperforms in this way, it tends to act as a warning sign that crypto strength may not be as broad-based as it first appears.
Gold: Bounce faded at the 50-day line
Gold had an encouraging bounce during the week, lifting from around 4,500 towards the 50-day moving average, but the move stalled below that falling average.
That is not ideal. Just as with Bitcoin, failure at a falling 50-day line tells you resistance is still active.
For now, as long as gold holds above the broken resistance line around 4,670, there is still a case for a return to the 4,782 area, where the 50-day average sits.
But the risk has increased that price could first retest the uptrend line from October, which comes in around 4,550. Even if that happens, it would not necessarily wreck the wider bullish picture, especially if the market later regroups for another push towards 5,000 plus.
One positive remains: RSI is still above 50, so momentum has not rolled over completely.
WTI Crude Oil: Capped by $99 again
Crude oil has been all over the place, but one thing has been consistent: $99 has acted as resistance again over the past couple of sessions.
There was also a bear trap from below the 50-day moving average at $94, which means the market did manage to reject lower levels. Even so, the immediate picture is still rangebound.
The levels to watch are:
- Channel floor: around $90
- Resistance: $99
- If $90 breaks: downside towards the mid-$80s
Another cautionary sign is that RSI has now slipped below 50. That can often indicate the rally has already seen its best phase, at least for now. It does not yet kill the broader bull run from the start of the year, but it does suggest momentum has cooled.
UK stocks: A bumper crop
The stock section is where things become much more upbeat. A number of charts, particularly among smaller names, continue to show strong technical patterns, with recurring themes that are worth noting:
Avacta: Still resolute above 80p: Avacta has turned around impressively since March and April. The key technical signal was the bounce above a rising 50-day moving average, which is one of the better setups you will find. More recently, the stock bounced back above the 50-day line with strength and is now shaping up for a weekly close above recent 81p resistance. The target remains 94p, which is the top of a one-year rising trend channel. While the shares remain on the right side of 80p, that target looks live, potentially by the end of the month or sooner.
Cloudbreak: Quietly doing all the right things: Cloudbreak is not attracting much attention, but the chart is improving steadily. Both the 50-day and 200-day moving averages are rising, and a golden cross looks likely later this month. Price action is heading towards the top of the rising trend channel from October, targeting around 0.98p in the near term. After that, the bigger level is around 1.3p, which would represent the best levels of the past year. That target remains in play while the shares stay above recent resistance around 0.8p.
Cizzle Biotechnology: E-shaped bull flag points higher: Cizzle has an unusual but constructive chart pattern, described here as an E-shaped bull flag since March. The first target is the top of the range and the top of the channel near 3.4p in the coming days. Beyond that, old 2023 resistance opens the way towards roughly 4.75p, perhaps by the end of next month. Recent company activity involving options, salary waivers and related adjustments may imply management expects something meaningful to emerge.
Delta Gold: Overachieving, and still not done: Delta Gold has already exceeded recent targets, but the chart continues to behave exceptionally well. The progression has been fairly clear: Initial target around 84p, then 125p, above 125p, the move opens towards 170, the next target becomes 220. The 220 target is the one to focus on for the end of next month, and it may even be conservative. The setup is backed by an unfilled gap to the upside through previous resistance, which is one of the strongest signals around. As long as Delta Gold holds above recent broken resistance at 145, the upside case remains intact.
Filtronic: Best of British, and still powering on: Filtronic continues to go great guns. The stock has hit the next rising resistance line and is still pointing higher. The target remains £4.50, potentially by the end of next month, while the shares hold above the previous target area near £3.50. This move was also helped by a clean gap through prior resistance, and the stock has never really looked back.
Greatland Resources: Strong near the highs: Greatland Resources is close to the highs and travelling within a slightly unusual channel that has been in place since January. The floor of that channel is around 730p. While the shares remain above that level, the target is 940p, potentially as soon as the end of next month. A strong rebound above a rising 50-day moving average
GS Technologies: Recovery signs, but 0.28p must go: GS Technologies is showing first signs of recovery. RSI is just pushing through the 50 level, which is encouraging, but price still needs to do more. The key hurdle is a daily or weekly close above the floor of the old gap and the 50-day moving average at 0.28p. If that happens, the chart opens up towards the 200-day moving average near 0.60p by the end of next month. That is a punchy target, but this could turn into a punchy setup if the breakout confirms.
JD Sports: Key reversal puts 83p in play: JD Sports has produced an interesting reversal signal. There was a key reversal to the upside, and the stock has held support at the 50-day moving average around 72p. Above 72p, the next target is the 200-day moving average at 83p, potentially later this month or sooner. There is also a gap to fill at 76p. A close above that would make the route into the mid-80s look relatively straightforward.
ITM Power: The £2 argument remains alive: ITM Power still has a bullish case for a move towards £2. The technical basis is a resistance line projection from the June to July highs. Once the shares clear the most recent peak around 167p, the route to £2 becomes much more realistic. End of this month may be a little ambitious, but the chart is still pushing in that direction.
Kendrick: One of the better calls of the year: Kendrick has been one of the more rewarding chart setups this year. The stock has now closed above the recent gap level at 2.9p. That keeps the move on track towards roughly 4.25p by the end of next month. The price action also has that classic step-like behaviour seen in stronger trends: sharp rise, brief consolidation, then another sharp rise.
Novacyt SA: Missed the move, but the chart now matters above 53p: Novacyt has exploded higher after a setup that did not look likely to move at all, which is often how these things go. The trigger was effectively a bear trap island reversal. The crucial question now is whether the stock can hold above old one-year resistance at around 53p. If it can, then the next area to revisit is the old resistance band from 2023 and 2024 in the 80p to £1 zone. After such a sudden move, support retention becomes more important than chasing the initial spike.
Synthomer: V-shaped bull flag still points to 117p: Synthomer remains one of the standout charts. The stock has formed a V-shaped bull flag, suggesting the move is not finished yet. It has already overshot earlier targets, first around 54p and then 86p. The next objective is 117p, based on the upper parallel of the triangle from last August. That target could be reached in the coming days, especially while the shares remain firmly above £1.
S4 Capital: Overshot the first target, now 53p is in play: S4 Capital has also exceeded the initial target, which was around 32p at the top of its rising trend channel. The next level up is 53p, potentially by the end of this month, while the shares hold above the 40p area. That makes it another chart where momentum has already done the hard work and now only needs to avoid slipping back under former breakout territory.
Truetide: Small name, decent setup: Truetide may not be widely followed, but the chart is beginning to improve. There are two positives here: A bear trap rebound from below December support at 1.75p. A break above the 200-day moving average at 2.1p Above that, the target becomes the top of the triangle from this time last year, around 3.3p, potentially by the end of next month.
Wildcat: Golden cross potential and 0.1 in focus: Wildcat appears to have done what it needed to do to satisfy the market cap requirement for joining the Aquis market, and the chart now looks increasingly constructive. The target is the top of the triangle from last July, around 0.1p or a little more. That would imply a market value pushing towards £3 million. That is often the strongest phase of the cycle. The key support is the 50-day moving average near 0.06p. Above that, the 0.1p target remains favoured.
What stands out across the charts
There is a clear contrast in this market.
The major indices are looking hesitant, with the FTSE leaning on support, the DAX looking untidy, and the Dow stuck below a psychologically important barrier. Crypto is mixed, with Bitcoin just about holding up and Ethereum looking shakier. Gold and crude both have reasons to pause.
But among individual UK stocks, especially smaller names, there are repeated examples of the same bullish technical patterns working well:
- Bear traps that reject breakdowns
- Gap-ups that do not get filled
- Breakouts above rising 50-day moving averages
- RSI recoveries above 50
That is really the message of the day. The macro picture is cautious, but there are still plenty of charts where price action is doing exactly what bulls would want it to do.
For technical traders, that is worth remembering. When the broad market is messy, the cleanest opportunities are often in the names quietly following the script.
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.
