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, BSF, CAP-XX, Corcel, Delta Gold, EasyJet, GSTechnologies, GEO, Kendrick, Premier African, Rent Guarantor, Apertura, Zoo.
The start of June has brought a mixed picture across the major indices, crypto, commodities and a long list of small-cap shares. Some setups still look constructive and only need a push through nearby resistance. Others are wobbling badly and are close to turning into something far more painful.
What matters right now is not the day-to-day noise but where price is sitting relative to trend channels, moving averages and RSI behaviour. There are plenty of charts where the technical structure still favours higher levels. There are also a few where the warning lights are already flashing.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
FTSE 100: drifting lower, but not broken
The FTSE 100 has slipped back toward its 50-day moving average around 10,348. That is not ideal, but it is not a disaster either. As long as the index holds above the 50-day line and RSI stays north of 50, the broader bullish case is still alive.
The key battleground remains the 10,500 area. A proper break there would open the door to the top of the rising channel near 10,850 by the end of June. That is the optimistic outcome.
The less exciting scenario is that the market keeps shuffling around and leans on channel support nearer 10,225. For now, that looks more like the floor than a gateway to anything more bearish. A bigger setback does not appear to be the base case yet.
DAX: still one of the stronger index charts
The DAX continues to behave well. It has bounced from former resistance around 25,000, which is exactly the sort of retest bulls want to see after a breakout.
That leaves the door open for a move toward 26,200 into month-end, based on the top of the March rising channel and the projected line from the old June 2025 resistance area. If there is a wobble first, the current channel floor near 24,700 looks like the obvious downside reference.
Compared with many other markets, the German index still has a fairly orderly and constructive profile.
Dow Jones: bull flag breakout still points higher
The Dow remains one of the cleaner bullish setups. The chart is showing a breakout from a bull flag above prior resistance, which is normally a strong continuation pattern.
Even if the index is a touch softer on the day, that does not do much damage to the bigger picture. What keeps the setup attractive is the repeated support from RSI above 50, including a particularly robust rebound from above 60. That sort of momentum behaviour tends to favour trend continuation rather than failure.
The upside target remains around 53,000 by the end of June, based on a projection from the November resistance line. On the downside, the worst likely near-term move still looks more like a stop-clearing dip below 50,000, perhaps toward 48,800 to 48,900, rather than a deeper trend reversal.
It also helps that both the 50-day and 200-day moving averages are rising, with the 50-day climbing especially sharply. Structurally, that is a strong background.
Bitcoin: the disappointment is becoming more serious
Bitcoin is no longer just hesitating. It is pressing down toward the floor of a rising trend channel that has been in place since February, with support around 70,500.
If that level gives way, the chart would start to look far more dangerous. In truth, the weakness has already been telegraphed. Bitcoin lost the 50-day moving average, and RSI failed twice below the neutral 50 area earlier in May. Those were not healthy signs.
The next major support below the market comes in around 65,000. That would be a painful move, especially for all those corporate treasury and leveraged bullish narratives that tend to grow loud near the highs.
For now, the 50-day moving average is still just about rising, while the 200-day is falling. But if that 50-day starts rolling over, then a dead cross becomes a realistic risk. On the upside, 74,000 is now an obvious resistance area, having previously acted as support late in May.
Ethereum: weaker than weak
If Bitcoin looks shaky, Ethereum looks worse. The chart appears to have failed beneath old February support around 2,088, and the longer it remains below that zone, the greater the odds of a drop toward 1,900 or even 1,800.
Those lower levels line up with the February support area and would be the next logical destination if sellers stay in control.
To improve the picture, Ethereum would need to reclaim the 2,080 area decisively. Only then would a recovery toward the 50-day moving average near 2,237 come into view. At present that looks a long way off.
The broader problem is trend direction. Both the 50-day and 200-day moving averages are falling, which is textbook bear market behaviour. The only thing mildly supportive is that RSI has slipped into oversold territory below 30, so there is at least scope for a short-term pause or bounce. But oversold in a downtrend is not a buy signal on its own.
Gold: bounce off the 200-day line, but only a partial recovery
Gold did what it needed to do by rebounding from the 200-day moving average, and that part of the setup worked well. The problem is what came after.
The recovery has been underwhelming. Price stalled at the old October uptrend line, which has now switched roles and is acting as resistance. It also failed beneath the 50-day moving average, currently around 4,163.
That leaves two realistic zones in play:
- Upside cap: around the 50-day moving average near 4,163
- Downside magnet: back to the 200-day line near 4,007
For gold bulls, the more attractive buying area is closer to that 200-day support zone. Momentum is not helping at the moment either. There have been repeated RSI failures below 50, mostly in the low 40s, and that sort of pattern often precedes another leg lower. On that basis, a return toward the March support area near 4,100 still looks quite plausible.
WTI crude oil: vulnerable below key support
Crude oil remains a market that keeps everyone guessing, but the chart is fairly clear on the levels that matter. After the gap lower through 85, a sustained move below that region would point toward 80.
The only thing that might stabilise the picture is a run of end-of-day closes back above 88, which was the initial resistance during May. That is the level the market needs to reclaim and hold if it wants to avoid another push lower.
What stands out across the charts
A few themes keep repeating:
- Rising 50-day moving averages are doing a lot of heavy lifting in the stronger equity charts.
- Sideways consolidations are appearing in several small-cap names and often precede sharper breakout moves.
- RSI behaviour is proving useful in separating strong charts from weak ones. Rebounds above 50 are constructive. Repeated failures below 50 are not.
- Crypto remains under pressure, with Bitcoin close to a critical support test and Ethereum already looking outright bearish.
- Commodities are split, with gold only partially recovering and oil vulnerable unless it can reclaim key overhead levels.
If there is one broad conclusion from the early June setup, it is this: the best charts are the ones holding above rising moving averages and threatening breakouts from tight consolidations. The worst are the ones failing at former support with weak momentum and falling trend signals.
That sounds obvious, but in markets like these, sticking to those simple technical distinctions can save a lot of grief.
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.
