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.
Small-cap stock charts to watch
A number of smaller shares are setting up in a similar way: rising 50-day moving averages, sideways consolidations, and the potential for sharp breakouts if resistance levels give way. In several cases, the bears look overcommitted.
BSF Enterprise: recovery setup still favoured: This is one of those shares that has split opinion sharply. The bearish camp sees a mess. The chart suggests a recovery may be developing. The shares have bounced from a rising 50-day moving average, and that often precedes a stronger move higher. The recent action looks like a classic sideways shuffle after basing out. If the price can deliver an end-of-day close through 2.25p, then 4.5p becomes a realistic target by the end of June. There is also evidence of a bear trap reversal, with a gap down followed by a gap back up. That kind of whipsaw often catches late sellers on the wrong foot.
CAP-XX: breakout through the 200-day line: CAP-XX continues to validate the technical case. The key move was the break through the 200-day moving average at 0.27p, following a rounded recovery in the 50-day line and a push through recent resistance at 0.26p. That shifts the focus toward 0.36p to 0.37p, which corresponds to the old post-October resistance area. At this point, the expectation is that the shares should hold above the 200-day line rather than sink back beneath it.
Corcel: constructive after golden cross: Corcel has not been short of attention over time, but the chart now looks cleaner than it has for a while. A golden cross appeared back in March, and the shares have now pushed through the 50-day moving average at 0.45p. Above that, the target becomes the top of the rising channel from this time last year, potentially as high as 0.62p by the end of next month. The double bounce around 0.41p was encouraging, and the rising 200-day average provides useful support underneath. The fact that the 50-day line has started to turn higher as well only strengthens the case.
Delta Gold: gap through resistance keeps the trend alive: Delta Gold continues to punish anyone trying to force it lower. The latest positive sign is the gap through resistance at 137p. As long as the shares remain above that breakout zone, a move toward £2 by the end of June is not out of the question. The major clue earlier on was the rebound from around £1 and the support from a rising 50-day moving average. That combination often sets up a powerful continuation move. Momentum is backing the move too, with RSI pushing through 50 to around 57. So far, the chart remains firmly on track.
EasyJet: bid chatter aside, the chart had already improved: EasyJet has had the usual noise around bid speculation, but the technical picture was already strengthening anyway. The longer-term pattern included a heavy gap down last November and then a sharp recovery gap higher. An April breakout attempt did not stick, but this time the shares have moved above resistance around 413p. That keeps the door open for a move toward the £5 area, which lines up with the February resistance zone.
GSTechnologies: another sideways shuffle with breakout potential: GSTechnologies is volatile, but the chart is interesting for exactly that reason. The shares have been consolidating above a rising 50-day moving average after finding support near the lows. The trigger here is an end-of-day close above 0.45p. If that arrives, the target becomes 0.8p by the end of June. An RSI rebound from around 55 adds another positive clue. Ideally, the shares hold above the 50-day line and, more importantly, stay on the right side of 0.30p while the upside setup develops.
GEO Exploration: rising above a rising 50-day line: GEO Exploration has begun to build momentum with several sessions holding above a rising 50-day moving average. The initial target has been 0.15p, and beyond that the next level is 0.20p over the coming days or couple of weeks. If the move really gets going, the best-case target is nearer 0.23p by the end of June, matching the top of an old December gap. This is one of those charts where the trend structure is becoming increasingly difficult to ignore.
Kendrick: momentum remains very strong: Kendrick has been one of the more eye-catching names in the market, and the chart has done a good job of mapping the move so far. After moving through the earlier target around 5.75p, attention shifted to roughly 8.75p. With the rising trend line continuing to steepen, that upside projection has now moved on again, with 12.5p the next objective by the end of this month or even sooner. The chart remains strong, particularly with RSI rebounding comfortably above 50. Ideally, the old May resistance at 8.8p should now act as support on any pullback.
Premier African: surprisingly persistent strength: Premier African keeps climbing, which in itself says quite a lot about the present market mood. The shares have been trading above a rising 50-day moving average for most of the past month, which is unusual enough to deserve attention. If this were a less event-driven stock, the chart would already be pointing to at least 0.3p. Beyond that, there is potential toward the top of a triangle pattern around 0.52p, perhaps by the end of next month. There are still the usual concerns around fundraising risk, so this is not one to treat casually. But technically, the setup has improved. The ideal outcome is for the shares to hold above recent broken resistance at 0.022p and continue advancing toward 0.30p first.
Rentguarantor Holdings: quiet chart, improving structure: This is not a stock that gets much coverage, but the chart now warrants a look. The shares gapped higher, came back to fill that gap, and now both the 50-day and 200-day moving averages are rising. That leaves a channel target around 49p by the end of next month, provided the shares stay above the 200-day moving average at 26p. It also appears to be in the run-up to a golden cross, and that phase often delivers some of the strongest upside in the whole cycle.
Apertura Energy: strong move, difficult to map, but 142 is the near-term marker: Apertura Energy has been difficult to frame because the move has been so aggressive. Earlier targets were left behind quickly, and the chart is now searching for the next meaningful reference point. The best-case scenario from current levels is a move toward 175p, based on a rising resistance projection. The challenge is the huge intraday volatility, with a range stretching from 92p to 192p in a single session. Given that wild swing, the midpoint around 142p becomes the level to monitor in the near term. A close above there would suggest the balance of price action remains positive and that the move has not yet blown off completely.
Zoo Digital: subtle bullish divergence worth noting: Zoo Digital is less obvious than many of the other names, but there is a technical signal in place that can matter a lot when it works: bullish divergence. Price posted lower lows in May while RSI made higher lows. That disconnect can often hint that selling pressure is fading beneath the surface. The key is for the shares to hold above April support around 10.75p. If that level survives, the path back toward 13p to 14p by the end of June remains open.
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.
