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, WTI Crude Oil, Delta Gold, DeFi Development, Eco Atlantic, Future, Enteq Technologies, Jersey Oil & Gas, MG Group, PageGroup, Physiomics, SysGroup.
Markets are still giving mixed signals, but there are enough constructive setups around to keep the focus on selective opportunities rather than blanket optimism. Some of the major indices are still holding up well above key moving averages, crypto remains patchy, gold and oil are not behaving in the most intuitive way, and there are several UK stock charts that look significantly better than the broader backdrop might suggest.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
Here is the state of play across the main markets and the standout stock setups.
FTSE 100 stays supported above the 50 day moving average
The FTSE 100 is not doing a great deal either side of 10,500, but the important point is that it remains above a rising 50 day moving average. That keeps the near term stance constructive.
The 50 day line comes in around 10,416, and while the market holds above that area, dips continue to look buyable. If the market does soften further, the next important support is the floor of the rising channel and the uptrend line from March, which comes in near 10,360.
On the upside, resistance is still seen around 10,730 over the coming days.
The only slight frustration here is the RSI. It is sitting around the neutral 50 level, so momentum is not exactly roaring. Still, it is on the right side of neutral, which at least gives the bulls something to work with.
DAX remains half full rather than half empty
The DAX is in a similar position, but arguably with a slightly more encouraging tone. The market has bounced from the floor of a rising trend channel that has been in place since March, and it has also moved back above the 50 day moving average near 24,800.
As long as that support holds, the next objective looks to be a gap fill up towards 25,500. Even if there is some fallback after that, the chart still looks resilient given how close the market is to this year’s record highs.
The RSI has also bounced from the neutral 50 area, which adds to the idea that momentum is stabilising rather than deteriorating. For now, this remains a market where the glass looks more half full than half empty.
Dow still looks exciting on the upside
The Dow continues to be one of the more interesting major index charts. There is a clear uptrend line from last month, coming in around 51,950, and while the index stays above that level, the bias remains upward.
The initial target is a retest of recent resistance and the record highs around 53,300. If momentum continues into month end, the more ambitious objective would be the November resistance line projection near 54,200.
That may feel a bit distant given the geopolitical backdrop, especially with the Iran situation still hanging over sentiment, but from a chart perspective the setup remains valid.
What stands out here is the RSI. It has been bouncing in the upper 50s, which is typically a sign of strong momentum. In other words, this is not a market that is rolling over quietly.
Bitcoin still struggling below the 50 day line
Crypto is where the tone turns notably weaker, starting with Bitcoin. The market is still failing below a falling 50 day moving average, and that is usually not what you want to see if you are hoping for a sustainable recovery.
This weakness suggests a likely test of the breakout level from the old May resistance line around 61,000. Beyond that, there is a risk of a move towards 57,000 by the end of the month, which would tie in with the March support line projection.
The RSI is also just below neutral 50, which adds to the negative picture.
For the bearish phase to be properly challenged, the market really needs an end of day close back above the 50 day moving average. Until that happens, caution remains the default stance.
Ethereum is slightly better, but still not convincing
Ethereum looks a touch healthier than Bitcoin because it is at least holding above its 50 day moving average, which comes in around 1,754. That gives it a slightly firmer footing.
If it can build from here, the next upside target would be the old pre breakdown support near 1,975. That said, this still feels some distance away for now.
The bigger issue is the wall of resistance around 1,850. Unless Ethereum can break through that level, the chart still looks more like a sell into strength than a buy on dips situation.
There may be one final opportunity to buy near the 50 day line and hope for a break of 1,850, but this is not yet a clean bullish setup.
Gold continues to slide despite the headlines
Gold is behaving in a rather odd way. More tension around Iran seems to coincide with a weaker gold price, while less tension seems to lift it. That is not the usual script, but the chart is what matters here.
At the moment, the market is sliding again, with the main support area seen around 3,920. That looks like the current downside magnet, especially while gold remains below recent resistance.
That resistance now appears to sit around 4,180 to 4,200.
The RSI has failed repeatedly around the 50 level since the middle of May, and that is not a great sign. If the uptrend line gives way as well, the decline could accelerate. For now, this remains a market to treat carefully rather than chase higher.
Crude oil trapped in a range
Crude oil has also been underwhelming considering the fundamental noise around it. Despite all the efforts of Trump and company to keep the headlines lively, the market has not exploded in the way some might have expected.
The 200 day moving average near 74.50 currently looks like resistance, which is a slightly strange place for this market to be. The RSI is also below neutral 50, reinforcing the lack of positive momentum.
For now, the best interpretation is that oil is stuck in a range between roughly 67 dollars and 75 to 76 dollars.
The falling 50 day moving average is another drag. If the market does manage to break through 76 dollars, there would be a gap fill target up towards 83 dollars, but it is not immediately obvious what catalyst would deliver that move.
UK stock charts worth watching
While some of the big macro charts are drifting, several UK stocks are showing decent technical setups. A few of them are already in recovery mode, while others look as though they are trying to base.
- Delta Gold: The chart had already been hinting at good news before the official announcement. The shares had been rising above a rising 50 day moving average and staying above the gap floor at 165p. The target remains the top of the channel, which points as high as 240p by the end of next month.
- DeFi Development: This one is trying to recover from a less than glorious recent spell. The important feature on the chart is the consistent support coming in around 17p. While the price remains above that level, the recovery target is a move back towards the top of the range at around 30p. If that recovery comes through, it will likely be a welcome one for plenty of holders.
- Eco Atlantic: One of the better charts of the year. The shares are now breaking above the 50 day moving average at 56p, and that opens the way for a retest of 70p by the end of next month. The price channel also suggests a best case scenario up towards 80p into September. The move is backed up by an RSI rebound through the 50 area from Friday into Monday, which adds to the positive picture.
- Future: This is not a name that comes up often, but the chart is beginning to look interesting. The shares appear to be forming a broadening triangle base and have broken above the 50 day moving average at 307p. Above that, the next target is up to 360p by the end of next month, or possibly sooner, which would take the price to the top of the triangle. The 50 day line is also starting to rise, and that tends to be a decent buy signal in this sort of setup.
- Enteq Technologies: This is one of the strongest looking charts in the group. The key pattern here is the sideways shuffle above a rising 50 day moving average, which is often a favourite type of setup. It is made even more attractive by two additional features: An unfilled gap to the upside – A bear trap island reversal, with the shares gapping down in March and then gapping up last month. A break above recent resistance around 2.2p would target the top of the falling trend channel at around 3.4p by the end of next month. With such a strong setup, there is even a case for seeing that target by the end of this month.
- Jersey Oil and Gas: This one has a history of volatility and false starts, so caution is always sensible. Even so, the shares have now broken above the 50 day moving average. If the move can hold, it may not be too much to ask for a push towards the 200 day moving average at 110p over the next couple of weeks.
- MG Group: This chart also features a bear trap island reversal. The key trigger here is an end of day close through the 50 day moving average at 119p. If that happens promptly, the next move could be towards the top of the range at around 140p by the end of next month. If not, the recovery may already have done most of what it can do.
- PageGroup: This recovery continues to gather strength inside a broadening triangle base. The shares have broken through recent resistance at 131p, and the target remains 172p. The timeline for that move is as soon as the end of this month. The chart is supported by an RSI rebound through 50 and a rising 50 day moving average, both of which help confirm the improvement in trend.
- Physiomics: Director share buying has provided an additional boost here. The shares are bouncing from the floor of a rising trend channel and remain above the 200 day moving average at 0.45p. That keeps the door open to 0.8p by the end of next month, helped along by the latest company news.
- SysGroup: This is a quieter chart, but it is making progress nicely. The immediate target is the top of the broadening triangle at around 28p over the coming days. If that breaks, the next target becomes 40p by the end of next month, based on the upper parallel of the triangle.
- TPXimpact: The recovery here is continuing to build. The first target at 56p has already been met, and the next one is 80p by the end of this month. The shares are repeatedly finding support above a sharply rising 50 day moving average, which is usually a sign that the move has legs. In fact, the upside may not stop at 80p. If the channel steepens further, the chart could even be pointing towards the 100p area by September.
This is another very good looking setup.
The overall takeaway
The broad picture is still mixed but not without opportunity.
- FTSE 100, DAX and Dow remain broadly constructive while key trend supports hold.
- Bitcoin and Ethereum are still on shakier ground, especially Bitcoin below a falling 50 day average.
- Gold and crude oil are both failing to show convincing upside momentum.
- Several UK stocks are offering far more attractive chart setups than some of the macro markets right now.
If there is a consistent theme, it is this: respect the moving averages, watch the RSI around the 50 level, and pay close attention to stocks that are quietly building above rising support lines. That is where some of the best technical opportunities are appearing at the moment.
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.
