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, Anglesey Mining, Angus, Bay, Gfinity, Harena, Jubilee, Plexus, Rank, Renalytix, Strategic Minerals, Strip Tinning, Thruvision, Titon, Touchstone.
The broad market picture remains constructive, but much of the action is still about respecting key support and waiting for clean breakouts. The FTSE 100 is consolidating, the DAX remains strong at the top of its channel, and the Dow continues to hold above an important gap.
In crypto, Bitcoin is holding above its rising 50-day moving average, while Ethereum is trying to build from a similarly constructive technical base. Gold is attracting plenty of attention, crude oil is attempting to reclaim a key average, and several UK small caps are setting up for potential recoveries.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
FTSE 100: Still Trapped in a Consolidation Range
The FTSE 100 remains locked in a consolidation zone between roughly 10,820 and 10,990. Until the index breaks decisively out of that range, there is not a great deal to get excited about.
The preferred scenario is for the market to work its way towards the upper end of the range and eventually clear 11,000. If that happens, the upper parallel of the rising trend channel from March could come into play, with a best-case target of around 11,400 by the end of next month.
On the downside, 10,820 remains the key near-term level. While the index stays above that point, dips towards the level can be treated as buying opportunities. Initial support below that sits around 10,760, an area that previously acted as July resistance.
The more pessimistic scenario would involve a retreat towards 10,574, where the floor of the rising channel and the 50-day moving average converge. For the moment, however, the bias remains positive above 10,820.
DAX: Strong at the Top of Its Rising Channel
The DAX continues to look stronger than most major indices. It is hugging the top of its rising channel from March, which is generally the behaviour of a market that still wants to move higher.
Above 26,400, the next major target is around 27,300. That level represents the upper parallel of the rising channel and a projection from the February resistance line. It remains a reasonable target for the end of next month.
Support has been evident around 26,000 so far this month. A deeper fallback could take the index towards 25,600, which marked late-August resistance before it was finally overcome. As long as 26,000 remains intact, the setup remains firmly constructive.
Dow Jones: Holding Above the Gap
The Dow has continued to hold above its latest upside gap, with 53,600 acting as the critical level. While the index stays above that point, the immediate objective is a retest of the recent highs near 54,800.
A more ambitious target lies near 56,000, where the March resistance line projection comes in. That remains the upside possibility by the end of next month if the current bullish structure continues.
If the Dow slips back below the top of the gap, then the floor of that gap at 53,300 becomes the favoured support area. That would be the more attractive entry point for anyone looking to buy a dip rather than chase strength.
Bitcoin and Ethereum: Support From Rising Moving Averages
Bitcoin
Bitcoin remains in broadly the same position it has occupied for much of the past month. The encouraging feature is that it is consolidating above a rising 50-day moving average, which is a positive technical sign.
Initial resistance is around $67,000. A clear move through that level would open the way towards $70,000, where the 200-day moving average sits. That is the best-case target for the end of the month.
The key downside level is the rising 50-day average near $63,347. If that gives way, then $61,000 is the likely worst-case support area. The weaker dollar continues to provide some support to the crypto market, so a collapse below that level is not the central expectation.
Ethereum
Ethereum is receiving support from its rising 50-day moving average, currently near $1,805. The Relative Strength Index has also bounced from the neutral 50 area and is now in the upper 50s, adding to the impression that the chart is trying to stabilise.
The initial upside target is around $2,044. Given the extended period of consolidation, that is probably the realistic near-term ceiling rather than a signal to expect an immediate runaway move.
For now, any dips back towards the 50-day moving average are regarded as buying opportunities, provided the support structure remains in place.
Gold: The 200-Day Moving Average Is the Target
Gold is attracting plenty of attention, helped by dollar weakness and possibly by hopes of progress around geopolitical tensions involving Iran. Whatever the reason, the chart itself is the main point of interest.
Recent support near $4,240 remains important. While gold stays above that area, the technical target is the 200-day moving average at approximately $4,495 by the end of the month.
An extended, multi-tested RSI uptrend line also supports the case for further gains. The minimum expectation, while this momentum structure holds, is a move towards that 200-day average.
Crude Oil: Trying to Reclaim the 50-Day Average
Crude oil has been trading around its 200-day moving average and is now attempting to move above the 50-day line near $79.59.
A close above the 50-day average would strengthen the case for a move towards recent resistance around $87. That upside scenario could become more likely if ceasefire negotiations deteriorate, although the current impression is that those talks are progressing reasonably well.
On the downside, the 200-day moving average around $76.61 remains the favoured level for buying a dip. The basic framework is simple: support around $76.61, confirmation above $79.59, and potential upside towards $87.
UK Small-Cap Chart Setups
- Anglesey Mining: Bull Flag Breakout: Anglesey Mining has produced a small bull-flag breakout above the former June resistance level at 5.6p. Both the 50-day and 200-day moving averages are rising, while the previous resistance line near 4.75p has already been overcome. The target is the top of the rising trend channel from September, around 9p by the end of the month. It is a straightforward bullish continuation setup, provided the breakout holds.
- Angus Energy: A Possible Reorganisation Play: Angus Energy has multiple support points around 0.18p. Above the recently broken 0.19p resistance level, the chart points towards the top of the range around 0.22p. There is not a huge amount to work with beyond the chart, but the rising RSI line suggests the possibility of accumulation. The setup needs to hold above 0.19p to retain its positive tone.
- Bay Capital: Rising Above the 50-Day Average: Bay Capital has moved above a rising 50-day moving average, and the top of the channel near 13p is the initial target for the end of the month. The wider momentum setup suggests there may be room for more if the market gets going. Any retreat towards the 200-day moving average at 8.6p is currently seen as a potential buying opportunity.
- Gfinity: Hold the 50-Day Line: Gfinity has been disappointing in failing to sustain its move above the 200-day moving average at 0.044p. Even so, a close above that average would put a move towards 0.06p back on the table by the end of the month. The important level beneath the market is the 50-day moving average at 0.037p. The ideal outcome is that the shares hold above it and rebuild momentum rather than slipping back into another period of weakness.
- Harena: Second Time Lucky Above 2.5p?: Harena has been frustrating despite the support of US Department of Defense funding. Technically, the shares are now trying to break above the 200-day moving average at 2.5p. An end-of-day close above that level would provide a target of approximately 3.3p, the top of the channel. The timeframe may stretch into September, but the chart setup is worth monitoring as a potential second attempt at a proper recovery.
- Jubilee Metals: First Proper 50-Day Break Since February: Jubilee Metals has broken properly through its 50-day moving average at 2.57p, something it had not managed convincingly since February. Holding above that line would point towards the 200-day moving average at 3.25p by the end of the month. This is a recovery setup, and the 50-day average is now the level that needs to remain intact.
- Plexus: Sideways Consolidation Could Lead to a Bigger Move: Plexus has been difficult to chart, but the current sideways consolidation above a rising 50-day moving average is encouraging. The shares have also enjoyed an upside gap, adding to the positive appearance. The minimum upside target is the 200-day moving average at 4.77p by the end of the month. Extended consolidation around RSI 50 and above suggests the shares may be preparing to turn more decisively.
- Rank Group: Awaiting a Break of the Falling Channel: Rank Group has nudged against the top of its falling trend channel around 104p. What is needed now is an end-of-day close above that level. Such a move would create a target near 125p by the end of next month. There may be a company update or results around the end of the week, but the conservative charting approach is to wait for the breakout confirmation. Ideally, the shares remain above the 50-day moving average, currently just below 98p.
- Renalytix: Saucer-Shaped Turnaround: Renalytix has developed a promising saucer-shaped turnaround. The shares have already hit a second target near 4.25p and have broken above the 200-day moving average at 3.98p. An end-of-day close above 4.25p would point towards the top of the February gap, near 5.6p to 5.75p. The chart is looking increasingly constructive, but the close above the immediate resistance remains the key confirmation.
- Strategic Minerals: Recovery After a Long Retracement: Strategic Minerals has endured a long and substantial retracement, but the chart now suggests that the decline may finally be ending. The shares have broken the resistance line from April around 3.6p. Above that level, the top of the rising trend channel is around 5.8p by the end of next month. More cautious traders may prefer to wait for a close above the 50-day moving average at 4.11p. The key defensive level is the 200-day moving average at 3.38p. It has provided support on several occasions, while the RSI has also moved above the neutral 50 level for the first time since May. That combination suggests the shares may finally be ready to turn higher.
- Strip Tinning: Vertical Move Meets Historic Resistance: Strip Tinning has produced a near-vertical move and has reached a stray historical resistance line. It is a reminder that markets can sometimes react to levels that appear remote or technically untidy. The shares previously spent an extended period below the old channel floor at 23p. Now, above 40p, the major resistance target is as high as 70p. That is a substantial move, and whether recent news justifies it is a separate question. From a charting perspective, though, 40p is the level that keeps the 70p possibility alive.
- Thruvision: A Punchy Recovery Call: Thruvision was identified as a potential major turnaround situation at the start of the year, although the shares have drifted since then. The key now is the 200-day moving average at 0.83p. If the shares can remain above that level, there is a chance of a move towards the main resistance near 1.1p by the end of the month. It is a punchy target, but holding the 200-day average would be a meaningful change from another slide towards the post-June resistance area around three-quarters of a penny.
- Titon: Slow but Constructive Above the 200-Day Line: Titon is normally a slow-moving share, but it has a rising trend channel in place and is trading above its 200-day moving average. That creates the possibility of a move towards the top of the channel near 102p by the end of the month, or perhaps even earlier. The chart is not spectacular, but it is improving.
- Touchstone: Bounce From the Rising 50-Day Average: Touchstone has always been a difficult share, but there is a chance that it is bouncing from a rising 50-day moving average. If that support continues to hold, the target is the top of the range near 11p by the end of next month. The more cautious approach is to wait for a clearance of the 200-day moving average at 8.48p. A sustained move above that level would provide stronger evidence that the shares are finally on their way higher.
The Levels That Matter Most
The central theme across these charts is straightforward: many markets are in consolidation or recovery mode, and the moving averages are doing much of the technical heavy lifting.
- FTSE 100: Hold above 10,820 for a possible move through 11,000.
- DAX: Keep 26,000 intact for a possible run towards 27,300.
- Dow Jones: Stay above 53,600 to preserve the upside structure.
- Bitcoin: Hold the 50-day average near $63,347 for a $67,000 to $70,000 recovery attempt.
- Gold: Remain above $4,240 for a move towards the 200-day average near $4,495.
- Crude oil: A close above $79.59 would improve the prospects of a move towards $87.
As ever, the cleanest setups are those where price holds above rising moving averages, clears former resistance, and allows the RSI to remain above neutral territory. The strongest opportunities will come from confirmed closes through resistance rather than hopeful intraday spikes.
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.
