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, East Star, Focusrite, FIH, Geiger Counter, Hemogenyx, Kore Potash, Manx, Mast, Silver Bullet, tinyBuild, Yellow Cake, WeCap.
Today I run through the charts that matter: a quick technical look at the majors (FTSE 100, DAX, Dow), crypto (Bitcoin, Ethereum), gold, and a batch of small-cap stocks I’m watching closely. Below you’ll find the key levels, what I’m watching for next, and where potential buying opportunities might appear.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
How I’m reading the charts
Quick note on the indicators I use throughout: I lean on trend channels, the 50‑day and 200‑day moving averages, and the RSI (relative strength index), especially the 50 level. An RSI holding above 50 tends to signal momentum on the upside; failing below it often precedes more meaningful pullbacks. When I mention “floor of the channel” or “top of the channel,” I’m referring to the rising (or falling) trend lines plotted from recent swings.
Major indices
FTSE 100
The FTSE is off its highs but remains inside the rising trend channel that’s been in place since June. My near-term plan centres around 9,200. Worst case is a test of the 50‑day at 9,131. RSI sits around 57 — comfortably above neutral 50 — and we haven’t closed below the 50‑day since early May. I’m sticking with the view that a rebound could push the FTSE to the top of the channel — roughly 9,500 — by the end of next month, provided the 50‑day holds.
DAX
The DAX is trudging along the bottom of its rising channel (since April), around the 23,600 area. The 50‑day is falling, and RSI has repeatedly failed below 50, which technically should imply further weakness toward 23,400 or even the June low near 23,000. Despite that, price is holding up for now — a reminder that technicals and price action don’t always move in perfect step.
Dow
The Dow has been consolidating after several attempts to break out through 45,000 — it’s now successfully held above that level. The top of the channel sits near 47,600, which I’d expect to see by the end of next month while the index remains above 45,000 and the 50‑day (around 44,800). RSI is healthy, oscillating near 60 without getting overbought or slipping toward danger below 50.
Cryptocurrencies
Bitcoin
Bitcoin is finding support above RSI 50 and the 50‑day (114). There’s a bull‑flag formation in play: a break above ~117 would be constructive and could see a move toward the top of the channel at ~132 by the end of next month. The channel floor since March sits near 110 — that’s a reasonable buying area on dips. Worst-case scenario would be a deeper pullback toward the 200‑day (around 102), but for now I’m assuming Bitcoin remains within its March‑onwards channel.
Ethereum
Ethereum is still aiming higher — my target is 5,500. Timing has slipped from the end of this month to possibly the end of next month. A more conservative expectation is that ETH tests the 50‑day (4,275). Ideally it stays above the July channel floor near 4,450, which would act as the platform for a run to 5,500 by end‑October.
Gold
Gold has been smooth sailing for the bulls, trending up inside a clear rising channel from April. The top of that channel is around 3,850 and looks attainable by the end of next month (maybe sooner). As long as price remains on the right side of 3,600 — recent intraday support — the bullish case looks strong.
Small-cap stocks
Below are the names I covered today, with the crucial levels and my near-term targets. These are technical reads — keep risk control tight and use the supports I note as reference.
- East Star: Gapped higher after some positive VMS commentary, bouncing above a rising 50‑day. Previous target 1.8p was hit and closed out. Key support is around 1.7p and the 50‑day; I’m eyeing 2.75p (top of the rising channel) as the next target, potentially sooner while price holds above the 50‑day.
- Focusrite: Interesting product tie‑ins for musicians — chart wise, Focusrite gapped through the August peak at 178p and cleared the 200 day at 184p. My next target is 220p by the end of next month while price remains above those levels.
- FIH Group: FIH has formed a sharp rising channel since March and has been too strong to retest the floor. The old peak was £2.52; above that I’m looking toward the channel top near £4 by the end of next month. The breakout through 285p was a bullish signal.
- Geiger Counter: Counter In the nuclear/radioactive group and showing a wide rising channel since the turn. The top of the channel is at 75p, which is my target by the end of next month while the stock remains above the channel floor and the 50‑day. Note the RSI has rebounded above 50 — often a leading sign of upside continuation.
- Hemogenics: One of my standout calls this year. Above 12p there’s little resistance until 16p — and above 16p there’s little between there and 24–25p (the February peak 25.2p). I’d expect 16p imminently (possibly by the end of the day) and the run toward 24–25p thereafter. Logical downside support sits in the 12–14p area.
- Kore Potash: Starting to stir. We’ve broken through recent resistance around 3.25p. With the RSI rebounding above 50 and both the 50‑ and 200‑day lines rising, I’m looking for 5p by the end of next month, with 3p as an important near-term support.
- Manx Financial: Moved higher today on news related to Finnu and a plug‑in overdraft. The chart shows a rising channel; I’m targeting 45p by the end of this month while the stock remains above the channel floor at 32p. Recent RSI behaviour supports the upside.
- Mast Energy: After an unhelpful RNS last week, the stock looks to be recovering. The 50‑day sits around 98p and price has climbed back above it. A minimum near the old support at £1.34 (134p) is possible, but I’d be surprised if we didn’t see 200p (£2.00) by the end of next month while price holds above the 50‑day.
- Silver Bullet: Looks to have formed a base after a bear‑trap rebound from below 27p. Above that, the 200‑day line (40p) is the next upside reference. The pattern suggests a rebuild and a potential run higher if support holds.
- tinyBuild: TinyBuild’s results were broadly anticipated and delivered. We saw a textbook breakout through 6.5p with a gap higher. The shares hit my target of 11.6p exactly, and above that there’s scope toward 18p. The extended RSI 50 rebound through August helped set up this move.
- Yellow Cake: Another uranium/uranium‑related play with a rising trend channel. Top of the channel is targeting 630p by the end of next month while the gap floor at 525p remains the key support. Double RSI 50 rebounds recently make the technicals look favourable.
- WeCap: Now tantalizingly close to a NASDAQ listing — the company hinted again today. The shares gapped higher above a rising 50‑day, and we’ve seen an extended RSI 50 rebound since the end of last month. I’m looking for 2.75p by the end of this month while price holds above the prior target 1.8p and the 50‑day.
Wrap-up
Overall, we’ve got a mixed but constructive picture: the big indices are mostly holding long‑term rising channels, Bitcoin and Ethereum have clear support/target zones, and gold is powering up. On the small caps, a number of clear technical setups are playing out — Hemogenics, tinyBuild, Geiger Counter, and others have nice momentum or breakout patterns to watch. Keep an eye on 50‑day support and RSI 50 rebounds: they’re doing a lot of the heavy lifting in these charts right now.
More updates tomorrow — stay disciplined, and trade with your risk controls in place.
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.
