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, Andrada, Coinsilium, CleanTech, 80 Mile, Halo, Itaconix, ICFG, KR1, Medpal, Sunrise, Smarter Web, Shield, Talisman.
The main theme across the charts is a split one. Major equity indices are struggling to hold momentum and still look vulnerable to further weakness, while Bitcoin, Ethereum, gold and a handful of crypto-linked small caps have suddenly found some much better form.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
The technical signals remain the key. A rising 50-day moving average, a successful RSI 50 rebound, gap reversals and breaks of old resistance are doing much of the heavy lifting. Where those ingredients are missing, rallies still look more like opportunities to sell into strength.
FTSE 100: Still a Sell Into Strength Market
The FTSE has tested the lower area of its channel around 10,700, reaching a low near 10,702 before staging a modest bounce. For now, the market is effectively caught in a range between 10,700 and 10,820.
The 10,820 level matters because it was support earlier in the month before breaking down. That leaves it as near-term resistance. The broader bias remains negative after the recent RSI failure at the neutral 50 level.
The practical reading is simple: rallies look more attractive for sellers than dips look for buyers.
The earliest more constructive level would be the rising 50-day moving average, currently near 10,644. Until then, the index remains technically constrained beneath former support.
DAX: Support May Not Arrive Until 25,600
The DAX looked strong while it held above 26,000, but the earlier-week gap has taken its toll and the index has slipped back beneath that level. It also failed near the top of its channel at 26,500.
That creates an uncomfortable gap in the chart. There is little obvious support between 26,000 and the late July resistance area near 25,600. That former resistance zone is the first significant place where buyers may step back in.
The 50-day moving average at approximately 25,400 is another reasonable support level if the selling continues.
RSI is still just above neutral at 53, which means the index is not completely broken down. However, four consecutive negative sessions show that a reading above 50 has not prevented a correction.
Dow: Resistance at 54,000 Remains the Problem
The Dow is still struggling to establish convincing support. It has found some response from the base of a gap near 53,300, but the recovery has been limited.
There appears to be a wall of resistance around 54,000. If that cannot be reclaimed, the next obvious downside areas are the floor of the rising channel from April and the 50-day moving average near 52,400.
The RSI reading around 55 keeps the picture from becoming wholly negative, but it does not remove the need for a proper base. The gap floor around 53,300 and the 50-day line near 52,400 are the levels to monitor for a more durable reaction.
Bitcoin: A Major Shift Above the 200-Day Moving Average
Bitcoin looked completely lifeless only a day earlier, but the technical structure was quietly improving. The price had been consolidating around a rising 50-day moving average, which is often the foundation for a stronger upside move.
The first target was 65,000, while the more optimistic target was the 200-day moving average just below 69,000. Bitcoin has now moved above that 200-day line for the first time since November, which is a substantial change in tone.
The next upside area is former resistance around 74,000. That is the obvious level to aim for, even if the market later runs into trouble there.
The extended July and August consolidation can also be read as an inverted head-and-shoulders formation, with the late June low forming the head. The RSI uptrend line has only just held together through several tests, but the recovery above the 200-day average gives the pattern much more credibility.
Ethereum: The Stronger Crypto Recovery
If Bitcoin has improved, Ethereum has improved even more. In fact, Ethereum provided an early clue that the crypto market was turning around.
The key feature was a consolidation above a rising 50-day moving average. The biggest upward moves often emerge after precisely that type of setup, and that is what appears to be developing here.
Ethereum is now approaching the old 2,400 to 2,500 resistance zone from April and May. The April peak near 2,475 is the immediate upside level to watch.
As long as the price remains above former resistance near 2,150, the near-term path remains pointed higher. The case was strengthened by repeated RSI 50 rebounds, with three such recoveries appearing during the month.
Gold: The RSI and Rising 50-Day Line Were the Clues
Gold has pushed higher after holding the lower end of its range around 4,320. The important point was that the market did not break below 4,300, despite plenty of frustration while it was sitting near the range floor.
The initial target was the 200-day moving average near 4,512, and that has now come into focus. Above that, late May resistance around 4,600 is the next technical objective.
The bullish case was already visible in the momentum. RSI held above the neutral 50 level throughout the month, while the 50-day moving average was rising. Those are the sort of signals that justify a positive stance before the breakout actually arrives.
WTI Crude Oil: $88 Is the Immediate Breakout Level
WTI crude oil is approaching the top of its falling trend channel near $88. A decisive end-of-day close above that level would open the way towards $100, which is the top of the broader rising channel extending from June.
The preference now is for oil to remain above recent support near $83. There have also been two RSI 50 rebounds in recent trading, adding weight to the recovery case.
Holding above $85, which was recently broken resistance, would keep the chart constructive. Above $88, there is room for a significantly larger move by the end of next month.
SpaceX: Falling Moving Averages Keep the Pressure On
SpaceX has been moving either side of its 50-day moving average near 142.84. With the 50-day line falling, the risk is a move towards 130 if the shares stay below it.
Both the 50-day and 200-day moving averages are pointing lower. The available chart history may be limited, but that is still not a helpful backdrop for bulls.
Any strength towards 142 is currently treated as a shorting opportunity rather than a breakout signal. The technical picture would need to improve materially before that changes.
Small-Cap Share Charts to Watch
- Andrada: Bull Flag Points to 6p: Andrada has become one of the standout charts after a long period of relative quiet. The shares have formed a bull flag above old resistance, which is a strong continuation signal. Both the 50-day and 200-day moving averages are rising sharply. As long as the price remains above recent flag support around 4.12p, the chart points towards 6p by the end of next month, potentially sooner.
- Coinsilium: Crypto Strength Could Drive a Turnaround: With Bitcoin and Ethereum recovering, companies linked to the crypto space are naturally attracting attention. Coinsilium has rallied through a rising 50-day moving average, doing so with a gap higher after a series of encouraging candles. The first target is the 200-day moving average near 2.7p. If that level is cleared, the larger target is resistance around 3.5p by the end of next month. The chart has the look of a possible turnaround, provided the shares can remain above the 50-day moving average.
- CleanTech: A Bear Trap Island Reversal Above 5.6p: A positive company update has pushed CleanTech sharply higher through its 50-day moving average near 5.6p. The structure is particularly interesting because it follows two recent gaps lower and now a gap higher. That sequence creates a bear trap island reversal. Sellers were encouraged by the earlier weakness, only for the shares to reverse back above the 50-day line. The first target is the 200-day moving average around 7.4p. The strength of the latest news and the gap reversal give that target a reasonable technical basis.
- 80 Mile: Recovering After the Rug Pull: 80 Mile suffered a sharp early-month sell-off, but the aftermath has been more interesting than the initial fall. The shares have regained the floor of the gap around 0.5p. While that level holds, the minimum objective is to fill the gap towards 0.6p. The stronger scenario would be a move to the top of the falling trend channel near 0.7p by the end of next month.
- Halo: Channel Support Defines the Trade: Halo is following a rising trend channel, with the upper boundary currently pointing towards 11p to 12.5p. That is the upside objective by the end of next month if the channel remains intact. The key support area is around 9p at the base of the channel. RSI has moved above the neutral 50 level, which may be significant. For a more cautious confirmation, an end-of-day close above the 50-day moving average near 9.75p would strengthen the bullish argument.
- Itaconix: Clear Air Above 2p Could Mean a Punchy Move: Itaconix has reached the 190p area for the third time. A sustained move above that region would leave the next major resistance much higher, around 265p, dating back to 2023. The target is ambitious, but the chart is ambitious too. There appears to be little in the way of major price resistance between 200p and 260p, which means a clean breakout could travel quickly. The working target is 2.65p by the end of next month.
- ICFG: Triangle Breakout Could Target 30p: ICFG has a clear triangle top near 22.75p. A move through that resistance would create a technical target around 30p by the end of next month. The chart is also moving towards a golden cross, with the 50-day and 200-day moving averages both rising. As long as the shares hold above recently broken resistance around 19p, the momentum remains positive.
- KR1: Bitcoin Recovery Supports the 15p Target: KR1 was already hinting that a low might be in place before Bitcoin made its latest move. The shares opened at the low and closed at the high, suggesting buying interest, while earlier-month action showed signs of accumulation. There is also bullish divergence on the RSI. With the shares above 12p, the next target is the top of the falling trend channel near 15p next month.
- MedPal: A Constructive Bear Trap Setup: MedPal has continued to post fresh gains after bouncing from its rising 50-day moving average around 3.75p. The immediate hurdle is the 200-day moving average at 4.34p. Above that, the top of the rising channel offers a target as high as 5.7p by the end of next month.
- Sunrise: 200-Day Moving Average Is the Key Objective: Sunrise is one of the Nevada explorers showing some technical promise. The shares are above the 50-day moving average near 0.016p. The next target is the 200-day moving average around 0.024p by the end of next month. Holding the 50-day line is the essential first condition for that recovery to develop.
- Smarter Web: Recovery Potential Above 31p: Smarter Web has done well buying Bitcoin during the decline. With Bitcoin now recovering, the shares may have an opportunity to participate on the upside. The first target is the top of the falling trend channel near 37p. Above that sits a more ambitious objective near 48p, based on a February resistance-line projection. There is plenty of work still to do, but as long as the shares remain above recently broken resistance at 31p, those upside targets remain valid.
- Shield: Moving Towards Profitability and a 5.9p Target: Shield has produced a decent update. It is not yet making money, but it is getting closer, and the chart has reacted positively. The shares have broken recent resistance around 4.6p. That points to the top of the falling trend channel near 5.9p, with the target potentially achievable by the end of next month or earlier.
- Talisman: Fundraising Followed by a Possible Recovery: Talisman has raised £500,000 through a premium placing. Technically, the shares had been below the 200-day moving average near 6.5p, but a move above that level would improve the recovery case considerably. The next target would be a return towards 8p to 8.5p by the end of next month. The rising trend channel may need to be adjusted, but it is still just about valid, and bullish divergence on the RSI offers an additional positive signal.
The Levels That Matter Most
The strongest technical momentum is currently concentrated in crypto, gold and selected small-cap shares. Bitcoin above the 200-day moving average and Ethereum above its rising 50-day line have changed the mood across related names.
By contrast, the FTSE, DAX and Dow still need to prove that support can hold. Until they do, the broader equity-index approach remains cautious, with resistance levels carrying more weight than dip-buying enthusiasm.
For the individual shares, the recurring theme is straightforward: respect the moving averages, watch old resistance once it becomes support, and pay close attention to gap reversals and RSI 50 rebounds. Those are the chart features currently separating the stronger setups from the weaker ones.
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.
