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, Crude, Afentra, Helix, Jersey, Sancus, Prospex, Parkmead, Strategic Minerals, System1, Star Energy.
Here are the key technical reads for the big index futures, crypto, commodities, and a clutch of bulletin board favourites.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
The FTSE 100 started the week with a level that traders wanted to see defended. The 50 day line (around 10,374) was tested repeatedly, but the market kept failing at that line. At the time, it even looked promising because there were moments where price was able to close above that 50 day line earlier in the week. But the current situation is clearly weaker.
Price has now broken below the floor of the channel that has been in place since October (roughly around 10,150 to 10,180). Once that floor goes, the chart usually starts searching for the next big place where buyers might realistically show up.
The Dax tried to be resilient, holding above the floor of its channel that has defined the range since April. That floor is a key technical reference point because it represents the market’s “we are still fine here” boundary.
Unfortunately, the Dax is now below that level, and that changes the tone quickly. With index charts, when you lose the channel floor, you often get a “deeper dive” search for the next support area.
The downside target outlined is: 22,200 (late April support area). Momentum does not help either. There are multiple RSI failures below 50 (three in that region).
Bitcoin: RSI trend broken
Crypto is currently behaving like the rug has been pulled again. Bitcoin looked encouraging until yesterday, when the RSI uptrend line was broken. After that, price slid past the falling 50 day moving average.
A point worth remembering here: the speaker notes that many previous pushes through the 50 day line were temporary. So when price moves back below it, traders should not be surprised if it becomes resistance again rather than a launchpad.
That said, the key distinction is whether traders get an end of day close back below the 50 day line. While still on current levels, there is a possibility (described as an “outside chance”) for a recovery attempt.
What would traders be looking for?
- A move up toward the top of a falling trend channel around 78,000
For aggressive traders, the idea is to wait for confirmation: an end of day RSI sell signal below the uptrend line from February could suggest a move back toward the mid 60s to low 60s levels seen earlier in February.
Ethereum: similar risk, slightly better timing
Ethereum is expected to follow Bitcoin’s pattern. The expectation described is that it may get a temporary push through its 50 day line, then pull back.
However, Ethereum has been framed as slightly better, roughly a day behind Bitcoin in timing. The 50 day line is around 2,083, with the recovery zone tied to the top of a falling trend channel near 2,673.
If Ethereum falls below the 50 day moving average, the risk becomes more direct.
Gold: breaking the 50 day line quickly, and the next support is lower
Gold did what traders “didn’t want it to do” as well. After breaking the 50 day line, it moved down almost immediately toward the floor of a rising trend channel from October.
The exact positioning is slightly debatable, but the theme is consistent: once it slipped below the floor of that channel, traders had a new downside pathway to consider.
The reference levels mentioned are:
- Below 4,680: risk of a move down toward 4,420 (February support area)
There is still one “save the chart” condition: an end of day close back above 4,820 (mid-February support). Without that, the sell pressure looks more credible.
On a day like this, it is frustrating when markets are not just drifting down, but moving decisively through technical anchors. That is exactly the kind of behavior that tends to extend losses unless a clear reversal level is reclaimed.
WTI crude oil: the market stabilized, but $100 is the trigger
Crude oil looks like the “market at the moment” in terms of how it explains risk-on and risk-off across other assets. The sell-off was linked to a push toward $100. But what changed is that the Iran situation is not expected to resolve as quickly as some had hoped.
Technically, WTI is framed as sitting in a defined range:
- Support around the low 90s
- Resistance near the $100 area
So the near term is about range behavior. Traders are watching whether WTI gets:
- An end of day close through $100
If that happens, then the upside targets could open up toward 110, 120, and further extensions.
For now, it is stable within the zone, with an attempt to move higher but not a confirmed breakout.
The big takeaway: markets want confirmation, not guesses
Across FTSE 100, Dax, Bitcoin, Ethereum, Gold, and WTI, the message is consistent. Many markets are either:
- failing at major moving averages (like the 50 day line),
- breaking below channel floors, or
- losing RSI momentum support (multiple RSI failures below 50).
And when markets do that, “oversold” is not a buy signal by itself. It is a status. It tells you condition is stretched. It does not guarantee a reversal.
That is why the plan keeps coming back to the same technical trigger points:
- End of day closes above or below key levels
- Moving average direction (are 50 day and 200 day lines falling?)
- RSI behavior around 50 (failures and rebounds)
In the bulletin board world, the same logic applies to AIM stocks: breakouts are not real until support holds and the next resistance area is approached in a disciplined way.
Quick watchlist: levels that matter next
- FTSE 100: 10,080 then 9,930; key reclaim would be back above the lost channel/50 day area.
- Dax: 22,200 downside risk; reclaim resistance around 47,500 to improve the picture; 200 day line around 46,500 is the pivot.
- Bitcoin: risk remains unless it can stabilize above its falling 50 day line; recovery attempts could target ~78,000.
- Ethereum: 50 day line around 2,083 matters; above RSI 50 keeps recovery alive, below opens risk toward ~1,755.
- Gold: below 4,680 risks ~4,420; reclaim above 4,820 would be the “save it” condition.
- WTI crude: range between low 90s and $100; an end of day close through $100 is the breakout trigger.
- AIM stocks: Afentra holds strength above 67p; Prospex ideally above 3.5p; Parkmead ideally above 25p; Star Energy above 12p.
More important than any single target is the sequence. Price breaks the level, RSI confirms or fails, and the moving averages decide whether this is a dip or the start of something larger.
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.
