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, Delta Gold, EasyJet, Goldstone, Knights Group, MicroSalt, Oracle Power, Phoenix Copper, Smarter Web, Wishbone.
It is a straightforward risk-on setup across the major indices right now. The key charts are still pointing higher, and in each case, the price action is doing what it needs to do to keep the bullish case alive.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
The focus here is on the FTSE 100, the DAX, and the Dow. All three are showing constructive technical behaviour, with breakouts either already confirmed or in progress, and the bias remains to the upside unless key support levels begin to give way.
FTSE 100: Bullish continuation above the 50-day line
The FTSE 100 has delivered the sort of price action that keeps a positive chart firmly intact.
The first important point is the bounce above the rising 50-day moving average. What makes that move more encouraging is that the market managed to turn higher without even touching the line. In chart terms, that often acts as a continuation signal. It tells you buyers were keen enough to step in early rather than waiting for a deeper pullback.
That set up the sharp move higher seen on Thursday, and crucially, there has been follow-through after that move. A one-day spike is one thing. A breakout that starts to build is far more useful.
The March falling trend channel has been broken
Another major positive for the FTSE is the break above the March falling trend channel. That channel had been capping the market, so clearing it improves the broader outlook and opens the way to higher resistance targets.
The near-term framework looks like this:
- 10,620 was the key breakout area
- Above that, the market was targeting 10,700
- 10,700 corresponds to April resistance
- The next bigger objective is 10,900
- 10,900 would take the FTSE back towards record highs
At this stage, the working assumption is that the FTSE 100 can make its way to 10,900 by the end of the month, provided the breakout continues to hold.
What could delay the upside?
The first warning sign would be a move back below 10,620. That would not necessarily wreck the chart, but it would delay the upside scenario and suggest the market needs more time to consolidate.
The worst case on the current setup would be a retreat towards the 50-day line at 10,397. Even so, that looks increasingly less likely as momentum improves. For now, the balance of probability still favours higher levels rather than a full test of support.
DAX: Onwards and upwards after the June breakout
The DAX is telling a similar story, and it is a strong one.
The market has broken out of what was effectively a triangle formation that dominated much of June. When a market spends weeks coiling in a tight range and then finally clears the ceiling, that often marks the start of the next leg higher.
That breakout came through 25,000, which had been an obvious line in the sand.
Targeting fresh record highs
With the DAX through 25,000, the focus now shifts towards 26,500 plus. That target lines up with the top of the March rising trend channel, making it a technically meaningful destination rather than an arbitrary number.
If reached, that area would represent record highs, so this is not a minor move under discussion. It is a continuation of the broader uptrend into fresh upside territory.
The chart remains constructive while the breakout holds, and there is no sign at the moment that the market is eager to give that move back.
The level to watch on any pullback
The main level to keep an eye on is 25,500, which marks previous resistance. If the DAX were to fall back below that area, it would delay the bullish scenario and suggest the breakout needs more work before the next sustained move higher can develop.
Until that happens, the message remains simple: the trend is still up, and the breakout points to more upside.
Dow: The next move still looks higher
The Dow has its own bullish setup, and despite the occasional distraction in the headlines, the chart is still doing the important work.
The market had been pressing the top of a rising trend channel from April, with that upper boundary sitting around 52,700. Once an index is trading in that sort of structure and continues to respect the channel, the natural assumption is that strength remains in place unless the lower boundary starts breaking down.
54,000 in sight
The upside target here is 54,000 by the end of the month. That projection comes from a November resistance line, so there is a clear technical basis behind the level.
As with the FTSE and DAX, this is not about chasing every small move. It is about identifying whether the trend structure remains valid. Right now, it does.
Support still looks secondary to upside momentum
The worst-case scenario for the Dow would be a pullback to the floor of the June channel, which comes in around 51,600. That is the key support zone if the market decides to pause.
Even so, the chart currently suggests that the next move is more likely to be higher rather than lower. In other words, support exists, but the market does not yet look desperate to go and test it.
The common theme across the charts
There is a very clear pattern running through all three indices:
- The FTSE 100 has bounced positively above its rising 50-day average and broken out of a falling channel
- The DAX has broken clear of a June triangle and is pushing towards the top of its rising trend channel
- The Dow remains in a healthy upward structure with 54,000 now the obvious target
That combination gives the broader market tone a distinctly positive feel. Yes, there are support levels to monitor. Yes, pullbacks can happen. But the charts are not currently behaving like markets that want to roll over.
For now, the technical outlook remains tilted to the upside, with record high territory very much on the table for both the FTSE 100 and DAX, and further gains expected in the Dow if present channel structures continue to hold.
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.
