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, Gold, Critical Metals, EnergyPathways, Eurasia, European Metals, Europa, Ferrexpo, Fusion, Serco, Vanquis, and Westmount.
Drawing on detailed chart analysis and recent trends, this article provides a clear picture of what to watch in the weeks ahead. Let’s explore the current landscape of the FTSE 100, DAX, Dow, Bitcoin, Ethereum, Gold, and several notable stocks from the critical metals and energy sectors to emerging opportunities.
Market Indices Overview
FTSE 100: Hovering Near Key Levels
The FTSE 100 has been surprisingly indecisive, lingering near important technical zones around the 9180 level. The recent high touched 9190 last week, with a peak at 9184 during the current run. Looking ahead, the best-case scenario projects resistance near 9240 by the end of August, potentially rising to 9400 by the end of September, aligning with the upper boundary of the rising trend channel established since May.
On the downside, support around 9080, stemming from the old channel top and June support line, is expected to hold. The initial August support near 9030 serves as a cautionary level in case of a pullback.
DAX: Bull Flag in Play
The DAX has performed relatively well, climbing about 1% today and currently forming a bull flag or descending price channel pattern. A key resistance to watch is 24,400, with an end-of-day close above this level potentially triggering a rally toward 25,300 by the end of August. This target corresponds to the top of last year’s trend channel.
While a downside risk remains, with a potential drop to 23,000, this appears less likely after the recent gap closure from last month. Technical indicators have improved, with the RSI rebounding above the neutral 50 mark and the 50-day moving average stabilizing and showing hints of an upward turn.
Dow Jones: Testing the Range
The Dow has been trading in a range between 44,000 and 45,000, experiencing a minor dip to the 50-day moving average near 43,500. Currently, it remains above this rising 50-day line and maintains a healthy RSI above 50. The upside target is to break through 45,000 and potentially reach 47,000 by the end of next month, aligned with the upper trend channel from May of last year.
However, ongoing trade tensions and tariff updates continue to inject uncertainty, possibly tempering the pace of gains.
Cryptocurrency Outlook
Bitcoin: Stabilizing Above Support
Bitcoin has reclaimed the important 11,500 level, which acted as strong support in July. This bounce off the 11,200 floor and the 50-day moving average signals resilience, though the RSI remains just below the neutral 50 threshold at 49.
To strengthen the bullish case, a solid close above 11,500 is needed, potentially setting the stage for a move toward 12,000 in the next couple of weeks. The optimistic target is 13,000 by the end of September. Conversely, a pullback to July’s support near 10,500 cannot be ruled out.
Ethereum: Signs of Strength but Room to Grow
Ethereum has shown encouraging signs with a rebound in RSI above 50 and a price holding above the rising trend channel’s upper boundary around 3,600. Although still far from its previous highs near 4,400, sustained strength above this level could pave the way to retest those highs by the end of August.
Short-term momentum favors further upside, but patience is required as Ethereum attempts to regain its footing relative to Bitcoin’s performance.
Gold: Consolidation Amid Mixed Signals
Gold has been somewhat stuck, failing to break decisively above the crucial 3,430 resistance line from April. It currently trades comfortably above the 3,320 channel floor and the 50-day moving average near 3,340, with an RSI in a positive position at 53.
Should gold manage an end-of-day close above 3,430, the path to 3,800 by the end of September would reopen. However, a pullback toward the 3,200 zone remains a risk if momentum falters. The technical picture remains cautiously optimistic.
Selected Stocks and Sector Highlights
Critical Metals: Potential Rebound
After a tough period, Critical Metals started the week with a gap down that appears to have overshot. The price action showed a strong recovery, closing at the day’s high and moving back above July’s support level at 3.12p. Holding above this level could see a rally to 5p, with a stretch target near 7p by the end of August, potentially retesting the 50-day moving average.
Energy Pathways: Signs of Revival
Energy Pathways cleared a key resistance line from last October and found support above the 50-day moving average at 4.7p. The next milestone is the 200-day moving average rising toward 6.75p, with a bullish target of 8p by the end of August.
Multiple RSI bounces above 50 and a rising 50-day line signal renewed strength, suggesting the company could be returning to form after a challenging period.
Eurasia Mining: Dual Listing Boost
News of a dual listing has helped Eurasia Mining regain momentum. The RSI is comfortably above 50, and both 50- and 200-day moving averages are trending upward in parallel. This technical setup supports a potential breakout through the stubborn 5–5.5p resistance range, with a conservative price target of 8p by the end of September.
European Metals: Gap Fill and Recovery
European Metals experienced a gap higher at the start of August, with a partial fill bringing the price back to 9.12p. This failed gap fill is often a bullish indicator. Maintaining positions above the 50- and 200-day moving averages near 8.75p could see the price rise toward 14p by the end of next month.
Europa Oil & Gas: Momentum Building
Europa Oil & Gas stalled at 0.95p but remains above the resistance on the downside near 0.75p. The target remains 1.05p, with continued support from technical levels suggesting potential for further upside.
Ferrexpo: Rumors and Technical Strength
Rumblings about peace talks in Ukraine have added speculative interest in Ferrexpo. The stock is at the bottom of its range, with key resistance at 49p. A close above this level could trigger a move to fill the gap near 62p. The RSI has pushed above 50, and the price sits just above the 50-day moving average at 48p.
Technical signals such as a bear trap rebound and gap close buy signal add further weight to the bullish case, regardless of geopolitical developments.
Fusion Antibodies: Patent News Drives Gains
Fusion Antibodies hit the target price of 13.7p almost exactly, a milestone worth celebrating. The next resistance is the upper parallel of the rising trend channel, currently aiming for 21p by the end of September.
Recent strong patent news for the company’s Optimal technology marks a fundamental breakthrough, enhancing the stock’s outlook.
Serco: Strength from Asylum Seeker Hotel Activity
Serco has reached the top of its rising channel at 220p. If it can push above this level, the next target is the upper parallel of the trend channel at 240p by the end of August. RSI patterns with multiple bounces above 50 support this positive momentum, complemented by unfilled gap breakouts that often signal strength.
Vanquis Banking: Rising Trend Channel
Vanquis Banking, a lesser-known stock, is trading within a rising trend channel established since February. Holding above recent broken resistance at 109p, the target is 132p by the end of September. The risk/reward setup looks attractive for bullish investors.
Westmount: Consistent Uptrend
Westmount has shown steady strength with blue candles every day since July 30th, indicating sustained buying pressure. The stock is approaching the top of a broadening triangle from last September, with a target near 3.2p to 3.3p, provided it holds above recent support at 1.9p.
Conclusion
Overall, the markets present a blend of cautious optimism and technical setups that merit close attention. While major indices like the FTSE 100, DAX, and Dow continue to test critical levels with potential for further gains, cryptocurrencies and gold show mixed but promising signs.
In the stock realm, several companies in the metals, energy, and service sectors are poised for meaningful moves, driven by technical breakouts, fundamental news, and broader market dynamics. Whether you’re tracking big indices or exploring individual stock opportunities, the coming weeks could offer compelling trading and investment possibilities.
Stay tuned for ongoing updates and keep a close eye on these key levels and indicators as the market evolves.
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.
