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, Critical Mineral, Faron, Ferrexpo, Fusion Antibodies, GS Chain, Huddled, Incanthera, Medpal, Rc 365, Reveille, Strategic Minerals, Smarter Web, SEEEN.
Rising moving averages are providing support across several markets, but the next move still depends on whether prices can clear nearby resistance. Here are the levels that matter for the major indices, cryptocurrencies, commodities and shares on the radar.
As always, do your own research and treat these as chart-based observations rather than hard recommendationsend-of-day
Major indices: Support holds, resistance remains
FTSE 100
The FTSE 100 is still grinding along the floor of its rising trend channel from March, around 10,660. An end-of-day close above the 50-day moving average, near 10,777, would be a useful first step. The index briefly pushed through that line last week but failed to hold the break.
The more decisive hurdle is the July resistance line around 10,800. Clear that, and the top of the channel comes into play. With the Budget approaching, it is less obvious what would provide the push. On the downside, July support and the 200-day moving average sit around 10,439.
For anyone wanting more confirmation, the relative strength index, or RSI, is just below 50. An end-of-day move above that midpoint would add confidence. The fact that both the 50-day and 200-day moving averages are rising gives the index a more positive underlying picture than the hesitant price action suggests.
DAX
The DAX is also bumping along the bottom of a rising channel from March, this time near 25,300. Resistance at the 50-day moving average is around 25,800; a break through it would put roughly 26,200 in sight.
Below the market, the July gap near 25,100 is the first area to protect, followed by the 200-day moving average around 24,800. Last week’s bounce above the gap was encouraging, as are the rising 50-day and 200-day lines. The RSI is less convincing, having repeatedly failed below 50, but price has held up reasonably well despite that weakness.
Dow Jones Industrial Average
For the Dow, the immediate test is a resistance line from the beginning of September, around 52,000. An end-of-day close above it would shift attention to the 50-day moving average near 52,800. The 200-day line, around 50,200, is the important support underneath.
Cryptocurrencies: Bitcoin tests an old boundary
Bitcoin
Bitcoin has been consolidating, but its return to 82,000 makes the current position awkward. That level marked the top of an earlier range between 75,000 and 82,000. If Bitcoin slips back below it, a move into that range and towards the 50-day moving average near 76,500 becomes possible.
On the upside, the top of a broadening formation drawn from February points towards 95,000, potentially by the end of October. A rising channel may prove a better way to describe the pattern, however, particularly given the clearer channel on Ethereum.
Ethereum
Ethereum’s rising trend channel from February offers a more straightforward setup. While price remains above recently broken resistance at 2,580, the top of the channel near 2,960 remains the target. If that support fails, the 50-day moving average around 2,402 becomes the more likely destination.
Commodities: Gold weakens as crude oil recovers
Gold
Gold has taken a painful step out of what might have been a rising channel. It has also broken recent support around 4,230 and an uptrend line, with much of the damage occurring in one session after a determined attempt to hold up.
Below 4,230, another test of the 4,000 area is possible. The 50-day moving average is still rising, but falling through that line makes the setback more troubling than an ordinary weak week.
WTI crude oil
Crude oil has bounced from a rising 50-day moving average, with Middle East developments adding to the move. The floor of a price gap sits around $97. An end-of-day close above it would support a return to the rising channel from June and bring $105 into focus.
A more cautious approach would wait for a close above the top of the gap, near $99. The RSI has improved alongside price, strengthening the case that the recovery is under way.
Smaller-Cap Shares to Watch
- Critical Mineral Resources: Critical Mineral Resources has gapped above a rising 50-day moving average near 1.91p and is bouncing from it. That combination can precede a sizeable move. While the shares stay above the line, 3p is the target by the end of October, potentially sooner. The RSI has also moved through 50, adding another positive signal.
- Faron Pharmaceuticals: It has not been a kind year for Faron. After gapping down to new lows, though, the shares have pushed back through their 50-day moving average. The resulting U-shaped turnaround is a potentially powerful setup. While recently broken resistance at 35p holds, the May area around 48p to 50p is a punchy target for the end of October. A move above the top of the gap, near 39.12p, would make that case more persuasive.
- Ferrexpo: The possibility of progress towards a Russia-Ukraine resolution was raised as a potential help for Ferrexpo, and the shares advanced on Friday before following through today. The initial target was around 37p, at the top of the base of a rising channel. With the move extending, the upper channel line now suggests as much as 48p by the end of October, provided recently broken resistance near 34p holds. A rising 50-day moving average at the lows and an RSI rebound from 50 ahead of Friday’s jump both add weight to the setup.
- Fusion Antibodies: Fusion Antibodies is looking rather more fab than it has for some time. The shares recovered after dipping below the previous year’s low near 9.7p, a bear-trap move, and are now consolidating above a rising 50-day moving average just under 11p. While that average holds, 17p is the big-move target. The recovery from the old low, the moving-average support and a possible RSI rebound from 50 give the setup three points in its favour.
- GS Chain: GS Chain has lifted from lows around 0.12p without accompanying news. A push through recent resistance near 0.13p would open the way towards the 200-day moving average around 0.27p. That is an interesting move for a quiet share, although price action alone cannot tell us why it is happening. What the chart should not do is close back below recent support around 0.08p.
- Huddled: Huddled is trying to reboot its chart with a bounce above a rising 50-day moving average. It is a familiar setup in this rundown, but a useful one: while that line holds, 0.70p is the target by the end of October. The nearby moving average also provides a clear level against which to judge whether the idea remains intact.
- Incanthera: Incanthera’s break above roughly 2.75p pointed towards 5p, and the shares reached that minimum target quickly. The next level is the upper parallel of a resistance line drawn from last September, now heading towards 8p or more by the end of October. Ideally, the shares would stay above their earlier 2026 resistance around 3.25p on the way there.
- MedPal: MedPal has made a strong impression since its flotation. The shares have been trading around an existing target near 6.4p; above that, the next objective is 10p by the end of October. That may sound ambitious after a recent placing at 5p, but the rise since then has been striking. Holding above the recent swing low around 5.3p would help keep the higher target credible.
- RC365: RC365 has worked through its targets at speed. It reached 3.75p, moved on to 5.6p, and then hit the former best-case target around 6.4p. Above that level, the next area to consider is old support and resistance around 9.2p by the end of October. After such a rapid run, that is the fresh test rather than a reason to assume the move is over.
- Reveille Resources: Reveille Resources appears to be finding a home above its 50-day moving average near 6.1p. The upside target is an ambitious 11p by the end of October. For a more cautious signal, an end-of-day close above last week’s high around 7.1p would help. The RSI has rebounded from 50; the next encouraging development would be for the 50-day average itself to turn upwards.
- Strategic Minerals: Strategic Minerals is back near an initial target line around 6.3p following news of approximately $9 million in US funding for strategic minerals. Above that level, the chart points towards roughly 8.5p by the end of October. The upside case remains in place while the shares hold above the gap near 5.3p. The RSI had already rebounded from 50 ahead of the announcement. A gain of around 10% on news of funding looks fairly restrained, although the precise terms of that funding matter.
- Smarter Web Company: Smarter Web has doubled since the beginning of July, with surprisingly little bearish noise accompanying the rise. More importantly, its sideways consolidation above a rising 50-day moving average delivered the upward break that such a pattern can produce. A golden cross last week added another positive technical signal. While the shares remain above the top of the latest gap around 56p, a retest of the 70p-plus area is in reach, with as much as 85p possible by the end of October.
- SEEEN: SEEEN has had a long journey without yet delivering the sustained move its stronger rallies have promised. Too often, those rallies have faded after a day. Reaching 7p by the end of October would be a more convincing sign that this attempt is different. The old 2022 support near 14p is an intriguing longer-range level, but first the shares need to prove they can make it to 7p and hold the progress.
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.
