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, Beowulf, Beeks, Imaging Biometrics, Marechale, Mercantile Ports, MicroSalt, Nuformix, Panther Metals, Revolution Brands, Total Graphite, Xtract.
It is one of those sessions where a lot of charts are sitting at important inflection points. Some major markets are wobbling, crypto still looks fragile, gold remains under pressure, and oil has found a short-term geopolitical bid. At the same time, a number of smaller stocks are showing cleaner bullish setups than the broader indices.
Here is the full technical picture across the FTSE 100, DAX, Dow, Bitcoin, Ethereum, gold, WTI crude, and a run-through of several individual shares that are setting up for potentially interesting moves into the rest of June.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
FTSE 100 slipping under the 50-day moving average
The FTSE 100 has dropped below its still rising 50-day moving average, which comes in around 10,377. That is not ideal, especially because the market still looks vulnerable to a test of the rising trend channel from October, which sits roughly near 10,240.
If that level gives way, the chart starts to look much less comfortable. Last month’s support around 10,130 would then be under threat, and below that the 200-day moving average near 9,970 starts to come into the frame.
One of the weaker signals here is coming from momentum. The RSI has failed twice around the 50 area in recent sessions, and that sort of behaviour has tended to act as an early warning sign before previous pullbacks. It is not outright collapse territory yet, but it does shift the balance away from the bulls.
For the chart to improve properly, the FTSE really needs an end of day close above resistance from late February at around 10,480. Until then, this is more sideways to weak than convincingly bullish.
DAX breaks down through channel support
The DAX looked vulnerable at the end of last week, and the latest price action has not helped. The market has gapped lower through the floor of the March trend channel, which is a definite deterioration.
The area around 24,600 to 24,700 had looked like a possible support zone, but so far it has not done the job. That means the more defensive scenario now has to include the 50-day and 200-day moving average region around 24,200.
The RSI has also slipped below the neutral 50 mark and is sitting around 47. That matters because it suggests momentum has rolled over. The small positive is that in recent months the DAX has tended to bottom out in the upper 40s on RSI, so there is at least a chance that most of the damage has already been done.
On the upside, former January resistance around 25,000 is now likely to cap any near term rebound. That does not look like a level ready to break immediately.
Dow still fighting around key support
The Dow had an erratic week with large swings both up and down, but the finish was weak and the chart remains awkward. The key battleground is the support line around 50,600.
If that breaks, the next likely target area is around 50,000 to 50,100, even if a rebound follows later. There is also a negative divergence on the RSI. Price pushed to a higher high late last week, but momentum did not fully confirm the move. That often warns that buying power is fading.
Even so, the RSI is still above 50, sitting around 57, so the uptrend from March has not been decisively broken. The broader bullish view remains valid while the market holds above 50,000.
If that larger structure stays intact, a projected move towards 53,000 from the old November resistance line is still possible by the end of the month. Right now that looks more demanding than it did a few sessions ago, but it is not off the table.
Bitcoin still under pressure below 65,000
Crypto has been the unhappy part of the board recently, and Bitcoin remains vulnerable. It retested the February support zone, slipped a little below it, and is now meeting resistance at the old March support around 65,000.
That is the key lid. The longer Bitcoin stays under 65,000, the greater the risk of a much deeper move, potentially back towards the floor of the rising channel from July last year near 42,000.
That would be a severe unwind, so it is not the outcome anyone wants to focus on, but technically it has to be acknowledged while price remains trapped below resistance.
The RSI is still oversold, which at least helps explain the bounce from just under 60,000. Last week’s low came in around 59,476. For now, though, the message is simple:
- Below 65,000: the chart remains problematic.
- Back above 65,000: the pressure starts to ease.
Ethereum trying to recover after a sharp break lower
Ethereum traded well below the February low around 1,753 and dropped towards the 1,500 area before bouncing. It is now trapped between those two levels.
If it can close back above 1,753, that would improve the picture and open the way for a recovery into the 1,900 to 2,000 region, which had previously acted as support before the sell-off.
The trouble is that momentum still looks poor. The RSI has rolled back under the oversold 30 area, which is generally not what you want to see when trying to build a durable low.
The more bearish summer scenario would involve a move towards 1,000, although that looks a little too pessimistic at this stage given the recent bounce. Even so, Ethereum still has work to do before it can claim a proper recovery.
Gold remains painful below the 200-day line
Gold is still looking heavy, and that has been particularly uncomfortable for mining stocks. The metal has pushed back below the 200-day moving average at 4,437, and the longer it stays under that level, the more likely it is that March support near 4,098 gets retested.
The worst case would be a slide towards the base of the falling trend channel from January around 3,835. What makes this chart awkward is that the RSI is not yet oversold, which means there is still room for another leg lower before the market becomes truly stretched.
So even if a bounce develops, there may still be another 100 to 200 dollars of downside risk in the background first.
WTI crude oil boosted by Middle East tensions
Crude has found support from the latest escalation in the Middle East. Technically, the important point is that WTI has held above the initial May support zone around 88 dollars.
While price remains above that area, the market can target the top of the falling trend channel from March along with the 50-day moving average, which comes in at 97.45.
That said, this does not yet look like the start of a huge upside breakout. The prior breakdown still matters, and the 50-day moving average is falling rather than rising. For now, a rebound towards the high 90s looks more realistic than anything dramatically stronger.
Small-Caps
Beowulf Mining: Beowulf got a strong announcement last week and the shares are trying to build on it. The key positive is that the price is above the 50-day moving average at 8.80p. While the stock stays above 8p, the chart points towards a one-year resistance line target around 13p by the end of June, and possibly sooner if momentum really kicks in.
Beeks Financial: Beeks has also had encouraging news and has broken the midpoint of a W-shaped reversal pattern around 177p. That is a constructive development. From here, the immediate hurdle is an end of day close above the top of the March gap at 189p. If that happens, the next target is the 200-day moving average around 207p, potentially before month end. If the move really gets going, February resistance around 220p can already be pencilled in as a possible follow-on target.
Imaging Biometrics: This chart continues to impress. The earlier upside target at 0.92p, based on the top of the rising trend channel from January, has already been exceeded. Both the 50-day and 200-day moving averages are rising, and a golden cross is approaching. That combination suggests the next target around post-October resistance at 1.30p is achievable by the end of the month, and perhaps even sooner.
Marechale Capital: Marechale Capital received supportive confirmation news from the FCA, and the chart is responding quickly. The shares are moving towards an ambitious projection from the December resistance line around 6.7p. The key condition is that the stock remains above the top of the recent gap at 4.9p. If it does, the current move still has room to extend in the near term.
Mercantile Ports: Mercantile Ports has already had a decent rise, but the chart hints that another push may be on the way. Price has bounced back above the old target near 1.1p and produced a bullish key reversal while holding above a rising 50-day moving average. That setup points to the top of the recent range around 2.40p as at least a minimum upside objective, provided the shares stay above Friday’s breakout area near 1.55p on a closing basis.
MicroSalt: There is a little caution here because the chart still needs to prove itself, but it deserves a chance. The shares are rebounding from heavily oversold territory, and the last comparable setup back in December produced a useful rally. The first target is a return to the old December support at 41p. If that level is recovered, the top of the channel around 54p could come into play by the end of next month. It is an ambitious call, but if this turns into a proper channel rebound, it could have decent follow through.
Nuformix: Nuformix continues to tease a breakout. One of the most interesting features here is the extended uptrend line in the RSI window, which on its own suggests that a break higher may not be far away. The chart resistance from November sits around 0.23p. An end of day close above that level would open the way for a retest of the March spike at 0.36p. The only thing that has been slightly missing is a clearly rising 50-day moving average, but it now looks as though that line is beginning to turn up as well.
Panther Metals: Panther continues to grind higher almost every day, and it remains one of the cleaner uptrends on the board. The rising trend channel from December points towards 205p. As long as the shares stay above recent resistance around 160p, that 205p target remains in play, and it could easily be reached well before the end of June.
If anything, the trend now looks steeper than it did even recently, which tells you buyers are still pressing the advantage.
Revolution Beauty: Revolution has had a lift following the latest announcement involving Boohoo, or Debenhams if that is the preferred label this week. The shares are back near the initial upside objective around 5p. Above that, the next target is around 5.25p in the near term. The key support to hold is the former resistance at 4.5p.
Total Graphite: Total Graphite, the renamed and refreshed version of Tirupati, is trying to turn the corner. The stock gapped up on fresh news, and that gap suggests there should at least be a test of the 50-day moving average at 1.42p. If price can get through that level, the next area to target is around 1.6 to 1.7p, where the shares traded back in April. The critical technical point is simple: the market should avoid an end of day close back below the gap support at 1.3p.
Xtract Resources: Xtract has reached the earlier target around 1.4p, based on the top of the rising channel from last July. It took a while, but the target has now been hit. The next upside objective is around 1.9p, potentially by the end of this month. Ideally, the shares now hold above the recently broken resistance at 1.3p.
The broad picture for the rest of June
The larger markets still look mixed to weak. The FTSE 100 and DAX have lost some momentum, the Dow is still trying to defend trend support, crypto remains vulnerable below key resistance, and gold has not yet found a convincing floor.
Oil is stronger, but mostly as a rebound within a damaged structure rather than the start of a clear new bull run.
Where things get more interesting is in selected shares. A number of small and mid cap names are setting up with improving momentum, rising moving averages, gap support, reversal patterns, or fresh breakout structures. In an uncertain tape, those cleaner individual setups can often stand out more than the major indices.
For now, the key is to stay level-headed. Respect the support and resistance levels, watch the RSI signals carefully, and do not assume every bounce is the start of something bigger unless the chart actually confirms it.
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.
