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, Arc, Autins, Bradda, Beeks, Eurasia, Forgent, Gfinity, Greatland, Genedrive, MedPal, Quantum Helium, Shuka, Union Jack.
The start of the week brings a fairly familiar mix of optimism, caution, and a few charts that are trying very hard to break one way or the other. Across the main indices, crypto, commodities, and a long list of small caps, the technical picture is giving some very specific levels to watch.
Some setups are already following through. Others still need confirmation. Either way, there is plenty on the board.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
FTSE 100 edging toward a bigger breakout
The FTSE 100 began the week on the front foot after a strong Friday candle, the sort of session where the market opens at the lows and closes at the highs. That kind of price action usually points to determined buying, and the follow through has carried the index up toward the 10,480 area that had been the first obvious stopping point.
From there, the focus shifts to the May resistance zone around 10,500 to 10,570. Price has effectively done what it needed to do by pushing into that region. What matters now is whether the market can actually close above the May peak at 10,570. If it can, that opens the way to 10,700 next.
The more ambitious upside scenario is a move toward 10,900 by the end of next month, which would bring the top of the rising channel from October back into play.
On the downside, the most likely setback would be a retest of the 50 day moving average near 10,410 before another push higher. Even so, the underlying structure still looks constructive, especially with the 50 day and 200 day averages rising together in parallel.
DAX back at a key resistance line
The DAX has worked its way back to the January resistance line, which is notable because that was the same area that produced a bull trap last month and into the start of this month.
The immediate priority is holding above the overnight gap around 24,700. If that level remains intact, the index still has scope to climb within the rising trend channel from March.
The earlier target had been 26,300 by the end of this month. Given the pace of the market, that may be more realistic by the end of next month instead. It is still the key upside objective.
If the market turns softer, the 50 day moving average just under 24,400 is the main nearby support. Momentum is not stretched, with RSI in the mid 50s, which is a healthy place for a market trying to build upward pressure.
Dow still constructive above channel support
The Dow finished last week strongly and has enough momentum behind it to keep the bullish case alive. The first level to keep an eye on is 51,600, with 52,000 as the initial target and then 53,400 above that.
As long as the index holds above the floor of the latest rising channel near 49,950, the broader path still points higher into next month.
There is a more distant support level at the 50 day moving average around 45,500, but at this stage a retreat that deep looks unlikely. The recent bounce from the rising 50 day line fits the usual continuation pattern rather well.
Bitcoin trying to reclaim control above $65,000
Bitcoin has started the week a little better and is just back above $65,000. That matters because this area lines up with former support from March.
If the market can produce end of day closes above that level, the next target becomes $70,000. A move there would go a long way toward putting the bulls back in the game, even if only temporarily, and could even pull price back into the rising trend channel from February.
For now, the setup is straightforward:
- Above $65,000: scope for a move to $70,000
- Below that: risk of another trip toward the $60,000 area
The $60,000 zone remains the main fallback support, effectively the area that has held since the post February period.
Ethereum still needs to beat 1,753
Ethereum has improved, but not quite enough yet. The key level remains 1,753, which marks an old support area from February. Price has reached the low 1,700s, but it still has work to do.
If Ethereum can push and hold above 1,753, then the top of the channel comes into view around 1,990, potentially by the end of this month.
The downside risk has not completely disappeared, with 1,500 still the obvious support zone if the market rolls over. For the moment though, the pressure has eased and the chart is at least trying to stabilise.
Gold remains firm despite the obvious narrative
Gold has behaved in a way that would strike many people as counterintuitive. In theory, calmer geopolitical conditions should have weakened the metal. Instead, it has strengthened.
The chart shows a gap higher through 4,250, and that leaves the 200 day moving average at 4,451 as the next upside marker over the coming days. If the move really gets going, the stronger target for the end of this month is around 4,580.
That 4,580 area also matters because it coincides with the 50 day moving average, which has been acting as resistance since mid March.
WTI crude oil still vulnerable below $83
Crude oil has drifted lower within a falling trend channel that has been in place since March, and the chart is still awkward. The exact floor of the channel can be debated a little, but the important point is that the market remains weak while it stays under $83, which marks the top of the overnight gap.
While below that level, the market looks vulnerable to a move toward $77. If the selling deepens, the 200 day moving average near $73 becomes the next target.
And because oil has a habit of overdoing things, it would not be a surprise to see a more extreme dip toward the old February gap near $68.
RSI is around 33, which means the market is weak but not yet truly oversold. In other words, there is still room for more downside before the chart reaches exhaustion.
Stock charts to watch
Arc Minerals: Arc Minerals continues to surprise on the upside. The standout pattern here is a sideways shuffle breakout, which is often one of the cleaner signals for a strong upward move. The breakout came through 0.53p and above May resistance. From there, the top of the channel points to around 0.82p by the end of this month if the pace remains hot, or by the end of next month on a more measured view. The bigger upside stretch target is 1.05p by the end of next month, which would bring the top of the October gap into play.
Autins Group: Autins has an unfilled upside gap from last month and a chart that still suggests more to come, even if the stock has not exactly been known for speed. As long as it can hold above recent resistance around 13p on a weekly closing basis, the target is 20p by the end of next month. The presence of a golden cross only adds to the positive medium term view.
Bradda Head Lithium: Bradda has developed into a much stronger technical story, helped by the wider interest around its Rio Tinto connection. The stock has support from the 50 day moving average at 2.38p, and while it remains above that line the expectation is for a retest of recent resistance and then a move toward 4.5p by the end of next month.
Beeks Financial Cloud: Another contract win has kept Beeks in focus, and the share price is now trying to push through a resistance line that had already been flagged as a major objective after the neckline breakout at 177p. The earlier target was 220p, and that has now been reached precisely. If the stock can produce an end of day close above 220, the next level becomes 243p, which corresponds to the February resistance area. The 200 day moving average is also starting to rise, which is another favourable development. As long as support around 200p holds, the path still looks upward.
Eurasia Mining: Eurasia has been quiet, but that does not mean the chart is dead. There is a wedge style formation in place, with the top of the structure coming in at around 3.25p. The key support is the early June low near 2.45p. While the stock stays above that area, the working idea is that this is a heavily disguised bear trap rebound.
Forgent: Forgent produced a much better announcement than many would have expected, and technically the chart had already begun hinting that something was changing. The RSI had started to improve earlier in the month, and now the stock is pushing above the 50 day moving average at 0.017p. If that level continues to hold, the target becomes 0.028p by the end of next month. The chart also shows a helpful double bounce pattern, reinforced by RSI behaviour. The only question is whether the market can avoid the usual problems of a fund raise or holders using strength to exit underwater positions.
Gfinity: Gfinity is showing the early signs of a recovery from the base of a rising trend channel that stretches back to November. That support comes in around 0.043p. The initial target is 0.06p by the end of next month. In a stronger scenario, the top of the channel at 0.08p comes into view, although that remains some distance away. For a more cautious approach, the cleaner signal would be an end of day close above the 200 day moving average at 0.051p.
Greatland Gold: Greatland has produced one of the better setups around, with what can be described as a reverse bear trap. Those tend to be powerful when they work. If the stock can close above the 50 day moving average around current levels, the first target is at least 803p, which marks the all time high. The more bullish objective by the end of next month is 900p. Ideally the latest gap floor at 658p holds, although after such a sharp gap higher it becomes harder to place a tidy trading stop.
Genedrive: Genedrive is now trading above both rising 50 day and 200 day moving averages, which is not something seen often in this name. That gives the chart a much better tone. The top of the channel suggests a target of 1.86p by the end of next month, provided the stock remains above the 50 day line at 1.06p.
MedPal: MedPal has enjoyed a very strong run, helped by the excitement around Wegovy related developments. The move into the news was impressive, and the initial target at 4.50p was hit exactly on Friday. Now that 4.50 has been reached, the next upside objective is 6.50p. What had looked like a target for the end of next month now appears achievable by the end of this month if momentum stays where it is.
Quantum Helium: Quantum Helium also had a decent announcement and the chart has responded with a bear trap gap reversal back above the old December support at 0.024p. Above that level, the stock can aim for the 200 day moving average at 0.031p by the end of this month, even if it cools off again afterward.
Shuka Minerals: Shuka is showing the first proper signs of a turnaround. The stock has been consolidating around a rising 50 day moving average and, despite a brief dip below it, the moving average itself has kept rising. The trigger here is a break above the initial June resistance at 3.45p. That would point to 5p by the end of next month. For those wanting more confirmation, the more conservative route is to wait for a close above the rising 200 day moving average. When both the 50 day and 200 day lines are rising together and moving toward a golden cross, it is usually a strong technical backdrop.
Union Jack Oil: Union Jack Oil has reacted sharply, gapping through both the 50 day and 200 day moving averages. That kind of move tends to get attention quickly. With price above broken resistance around 3.5p, the broad target becomes the top of the range at 5.5p. A more immediate objective could simply be a fill of the gap toward around 4.75p, which may prove to be the more natural near term magnet.
The common theme across the charts
A lot of these setups come back to the same technical ideas:
- Holding above key moving averages
- Closing above old resistance rather than merely touching it
- Gaps acting as both magnets and support markers
- Rising 50 day and 200 day lines signalling stronger underlying trend conditions
- Bear trap and bull trap structures shaping the next move
That is particularly important right now because many markets are close to decision points. Some have already broken out. Some are still flirting with resistance. And a few are trying to turn what looked like weak charts into recovery trades.
For the moment, the bias across much of the board remains positive, but only if these levels continue to hold and, in several cases, only if the market can deliver proper end of day confirmation.
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.
