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, Arcontech, Amaroq, Andrada, Anglesey Mining, 80 Mile, EnergyPathways, KR1, London BTC, Smarter Web, Shuka, and The Beauty Tech.
It is a positive start to the week across several major markets, with the FTSE 100 and DAX both bouncing where they needed to bounce. Crypto is the real star of the show, though, with Bitcoin and Ethereum breaking higher and putting some rather ambitious upside targets back on the table.
Elsewhere, gold is attempting to stabilise following recent interest-rate pressure, crude oil has surprised to the downside, and a number of smaller shares are showing some very encouraging chart setups. The key, as ever, is not just the upside targets, but the support levels that need to hold on an end-of-day closing basis.
As always, do your own research and treat these as chart-based observations rather than hard recommendationsend-of-day
FTSE 100: A Bounce From Channel Support
The FTSE 100 has bounced near the floor of its rising trend channel, exactly where it needed to. The key support zone is around 10,630.
The market opened near its low and is currently trading near its high, moving towards the 50-day moving average at 10,749. That is the first obstacle. Beyond that, July resistance at 10,840 is the minimum upside target.
If the index can continue to recover into next month, the top of the rising channel from March points towards 11,100 or higher.
On the downside, a break beneath current channel support would bring the 200-day moving average near 10,413 into focus, along with the July support zone around that level. The RSI is moving back through the neutral 50 area, which is another encouraging sign for London blue chips.
DAX: Recovering From the Floor of Its Rising Channel
The DAX is also bouncing from the lower boundary of its rising trend channel. The exact line was not perfectly clean, with a brief move below roughly 25,400 looking very much like a stop-clearing exercise.
The initial recovery target is the 50-day moving average at 25,775. Above that, 26,000 is the obvious next level.
The best near-term scenario would be a move towards 26,200, where there is a gap from the start of the month. That looks like the upper-end target into month-end, rather than something to get too carried away with immediately.
Dow Jones: Recovery Needs Confirmation Above 52,000
The Dow Jones has not had the benefit of a fresh session yet, but the setup is worth revisiting. The floor of the channel and post-June support converge around 51,400, making that a plausible recovery zone.
The RSI is still in the upper 30s, so there is work to do before calling a full reversal. For a more cautious approach, an end-of-day close back above 52,000 would be the confirmation that a bear trap may be unfolding.
That would open the way towards the 50-day moving average around 52,800 to 52,900 over the next week or two, or by the end of the month. Reaching that area would be a good outcome.
Bitcoin and Ethereum Are Leading the Market Higher
Bitcoin: Breakout Above 82,000 Targets 94,000 to 95,000
Bitcoin is the standout chart. It has broken above the top of its recent 75,000 to 82,000 trading range, and an end-of-day close above 82,000 is the key breakout signal.
That break points towards the top of the broadening triangle that has been in place since February. The upside target is now around 94,000 to 95,000 by the end of next month.
Given the current momentum, that target could even arrive before the end of this month. The essential support level to monitor is 80,000. Staying above it keeps the bullish interpretation intact.
Ethereum: A Push Towards 2,900
Ethereum is also flying. The market has broken above the top of its recent range, which was around 2,580, and is already trading around 2,720.
The next technical objective is the upper boundary of the rising trend channel, near 2,900. That is the target for next month, although the speed of the current move means it could potentially be tested sooner.
If there is a sudden reversal, the 50-day moving average near 2,290 is the lowest level expected on an end-of-day closing basis. Cryptocurrency markets remain volatile, so clear risk levels matter as much as the upside projections. For a broader explanation of how moving averages are commonly used in technical analysis, see Investopedia’s guide to moving averages.
Gold: Holding Channel Support and the 50-Day Average
Gold has had a difficult time following the recent interest-rate rise, but the chart is attempting to stabilise at an important confluence of support.
The price has bounced from the floor of its channel and from the 50-day moving average around 4,295. While gold remains above that combination, the next target is the 100-day and 200-day moving-average area near 4,542 by the end of next month.
The best-case scenario would be a move to the top of the channel at 4,800 or more. That feels a long way off at present, but the first requirement is simply to preserve the bounce above 4,295.
WTI Crude Oil: A Surprise Move Lower
Crude oil has been more disappointing than expected at the start of the week. A period of consolidation around $97 to $98, followed by another push higher, might have been the obvious route. Instead, the market has moved lower.
The immediate risk is a decline towards $93, an area that acted as July resistance and then initial September resistance.
As long as oil holds above $93, a recovery towards $100 remains possible, with $115 as the more ambitious upside target. However, aggressive political rhetoric around Iran appears to be having the opposite effect from that intended, with excessive gusto failing to support the oil price.
Smaller-Cap Shares to Watch
- Arcontech: Break Above the 200-Day Moving Average: Arcontech has broken above its 200-day moving average at roughly 79p, a significant event given that the share price had not been above that level since last November. Holding above 79p puts the top of the rising channel from January in view, around 94p by the end of next month. With the current momentum, the target may be reached before month-end.
- Amaroq: 114p Must Hold for a Move Towards 138p: Amaroq has performed well, reaching and significantly exceeding its first target at 114p. The next focus is the top of the range and the upper parallel of the rising trend channel from October last year. That points towards 138p by the end of next month, provided the price can remain above the gap and former breakout level around 114p.
- Andrada: Third Target at 8p Is Now in Sight: Andrada has taken its time, but it is finally getting there. The first and second targets have been achieved, and the share price is now approaching a third objective at 8p. A sustained move above that level would point towards 9.5p by the end of next month. The key support is recently broken resistance around 6p to 6.5p.
- Anglesey Mining: Golden Cross Supports a 10p Target: Anglesey Mining is reviving. The recent golden cross, where the shorter moving average rises above the longer one, adds a constructive technical signal. As long as the shares remain above August resistance around 7p, the target is the top of the rising trend channel from this time last year, around 10p by the end of next month.
- 80 Mile: Short Covering May Be Adding Momentum: 80 Mile has gapped up sharply, which will not have pleased those holding short positions. The size of the move suggests that excessive short interest may be helping to drive the rally. Above resistance at about 0.94p, the chart points towards a recovery to 1.5p or more by the end of next month. The main technical condition is an end-of-day close above around 0.93p. The 200-day moving average is already rising, and the next constructive development would be for the 50-day moving average to begin rising too.
- EnergyPathways: Channel Target at 10.75p: EnergyPathways has a reputation for being a rather leaky share, so price strength without fresh news inevitably attracts attention. The fact that the shares are rising anyway suggests the market may be positioning for something. The top of the rising trend channel is around 10.75p. That is the target by the end of next month, though the shares could get there before the end of this month if momentum continues. Recent broken resistance around 8.3p needs to hold for the bullish case to remain in place.
- KR1: Crypto Strength Could Drive a Move to 27p: KR1 looks to be responding to the breakout in Bitcoin and Ethereum. The shares have moved above the 200-day moving average near 16p to 17p for the first time in roughly a year. Above that average, the next major level is resistance from January at 27p. That is the target by the end of next month. Ideally, KR1 remains above recently broken resistance around 14p to 15p. That would keep the recovery structure healthy.
- London BTC: A Double Win From Project News and Crypto Momentum: London BTC has received a positive update on its gold project in Nevada, which now extends over 3.5 kilometres. Combined with the strength in Bitcoin and Ethereum, it has created a double boost for the shares. The first priority is holding above the 50-day moving average near 1.7p. A break through the 200-day moving average at 2.1p would improve the chart further. The main target is April resistance around 2.75p by the end of next month.
- Nativo: 33p Is the Important Line in the Sand: Nativo has delivered the expected move to 0.48p. The question now is whether it can hold the gains and build another leg higher. The 200-day moving average at 0.33p is the critical support level. If the shares can remain above it, 0.48p becomes a platform rather than an endpoint. The more ambitious best-case target is 0.71p, based on the upper parallel of the price channel from March. It may look distant for now, but the chart levels are clearly defined.
- Smarter Web: Next Target Around 85p: Smarter Web has been buzzing. The share price has hit the first target at 36p, the second at 49p, and came close to the next target at 74p. With that progress made, the next objective is former support on the way down, around 85p. That may be achievable by the end of the month if the current momentum continues. On the downside, the shares should stay above 60p on an end-of-day closing basis. That area was January resistance and initial resistance earlier this year.
- Syncona: Strong Trend Structure Points Towards 128p: Syncona is rising within a well-defined rising trend channel. The top of that channel is around 128p, which is the target for the end of next month or potentially sooner. The particularly encouraging feature is the sequence of support points since the breakout through the 50-day moving average in May. Each support point has formed above a rising 50-day line, which is a very strong-looking technical structure. That sort of setup can often surprise to the upside, especially if the shares remain above recently broken resistance at 114p.
- Shuka: First Target 4p, Then 6p: Shuka is making another push through the 200-day moving average. The initial target is 4p, potentially as soon as the end of this month. If momentum persists, the larger target is as high as 6p by the end of next month. The shares are bouncing above a rising 50-day moving average, while the RSI is rebounding through the neutral 50 level. Both are positive signs.
- The Beauty Tech Group: Breakout Above 430p: The Beauty Tech Group, trading under the code TBTG, has broken through the top of its rising trend channel around 430p. Above that level, the chart suggests an accelerated move towards projected resistance from February near 495p by the end of next month. The key requirement is simple: the shares need to remain on the right side of 430p. Hold that breakout level, and the path towards 495p remains open.
The Main Levels to Watch
- FTSE 100: Support at 10,630, with 10,840 and 11,100 as upside levels.
- DAX: 25,400 support, then 25,775, 26,000 and potentially 26,200.
- Dow Jones: 51,400 is the recovery zone, while 52,000 provides confirmation.
- Bitcoin: Hold 80,000 after the breakout above 82,000 to target 94,000 to 95,000.
- Ethereum: 2,900 is the channel target, with 2,290 as major downside support.
- Gold: Stay above 4,295 to target the 4,542 moving-average area.
- WTI crude: $93 is the major line in the sand before a potential recovery towards $100.
The broader picture is constructive, particularly in crypto and selected smaller shares. But the best setups are still conditional: bullish targets need support levels to hold, breakouts need to remain above their breakout points, and end-of-day closes matter more than intraday noise.
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.
