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, BSF, CT Automotive, Delta Gold, Evoke, Gelion, Itaconix, Raspberry Pi, Solid State, Sulnox, Synthomer and Entain.
Markets are in one of those moods where a lot hinges on whether key levels hold. There are a few charts still constructive, a few trying to bounce, and crypto in particular looks vulnerable. On the stock side, there are also several small and mid-cap names where the technical setups remain surprisingly strong despite recent attempts by the bears to knock them back.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
FTSE 100: rebound, but it needs to prove itself
The FTSE 100 has managed a rebound after dipping beneath the 50 day moving average, which sits around 10,346. That move lower, briefly under 10,300, had the feel of a classic bear trap. It was the sort of drop designed to shake confidence and wrong foot the bulls.
The main issue now is momentum. The RSI slipped below the neutral 50 mark, which weakens the picture unless the index can quickly reclaim it. So the immediate task is straightforward:
- Get back above the 50 day moving average at 10,346
- Hold that level
- Recover momentum through RSI 50
If that happens, recent resistance around 10,560 comes back into focus. If not, there is a risk of a slide toward the floor of the rising trend channel from October, currently near 10,225.
DAX: still one of the better looking major indices
The DAX continues to look constructive. It is trading above former January resistance around 25,000, and that keeps the upside case intact.
The target from here is the top of the March trend channel, along with old resistance projected from June 2025, which points toward 26,200 by the end of the month.
On the downside, support is seen around 24,700, which lines up with the lower end of the current channel. Another positive feature is that the market is close to a golden cross, with the 50 day moving average set to rise through the 200 day line.
Both moving averages are climbing, and the period leading into a golden cross is often one of the strongest phases of the cycle. If the index has not fully expressed that strength yet, it may simply mean there is more to come.
Dow Jones: staying above breakout territory matters
The Dow was briefly unsettled by a spike in oil prices linked to geopolitical noise, but that seems to have steadied. Technically, the more important point is that the index remains above former February resistance around 50,600.
While that breakout holds, there is scope for a move toward 53,000 by the end of the month, based on a resistance line projected from November.
The key area to respect is 50,000, or just below. As long as the Dow remains on the right side of that zone, the setup still leans higher.
Bitcoin: the chart has deteriorated
Crypto is where the tone becomes noticeably weaker. Bitcoin has broken below the floor of its rising trend channel from February, with that support previously coming in around 70,100.
That leaves the market looking exposed, with the next major support area after March down around 65,000. For the near term, the market really needs to recover 74,000, which acted as support late in May. Until that happens, the chart remains under pressure.
The broader message is simple:
- Below 74,000, Bitcoin looks vulnerable
- A move toward 65,000 is now a realistic risk
- The February uptrend has already been broken
Ethereum: weaker structure, lower support in view
If Bitcoin looks shaky, Ethereum normally looks worse, and that is broadly the case here. Ethereum has also slipped beneath the floor of its rising channel, around 2,072.
There is some nearby support around 1,970, just under the 2,000 area, but the more serious support lies lower down, around 1,800. That level ties in with the low seen at the end of February.
As long as Ethereum stays below 2,050, which now counts as recent resistance, the risk is that the market drifts down toward that 1,800 region.
Gold: watching for another 200 day moving average test
Gold has bounced from the 200 day moving average, but the chart still looks as though it may want another retest before it can build something more substantial.
The 200 day line is around 4,413, and that remains the key support zone. If gold revisits that area and holds, the next upside objective would be the 50 day moving average near 4,632 over the coming days.
So for gold, the preferred sequence is:
- Retest the 200 day moving average
- Stabilise there
- Then push toward the 50 day moving average
WTI crude oil: rally faded beneath resistance
Crude remains highly sensitive to geopolitical headlines, but the chart itself still carries a bearish undertone. Even after yesterday’s rally, price failed near the top of a gap and stalled just under $95.
That rejection keeps attention on support around $88. If that gives way, the market could head back toward the $80 area. On the upside, the 50 day moving average near $97 looks like the practical ceiling for now.
In short, unless crude can convincingly break higher, the bias remains for weakness rather than a sustained breakout.
Stock charts to watch
BSF Enterprise: short pressure has not worked: BSF Enterprise is a good example of a chart where persistent selling pressure has failed to do the job. The move through 2.25p opened the way to 4.6p, and the shares have already made strong progress in that direction with a sharp upward wave. As long as the stock holds above 2.25p, the expectation remains for a push toward our target in the near term.
CT Automotive: breakout points to more upside: CT Automotive is showing a mid move consolidation breakout following a bear trap rebound from below the February support area at 22p. If the shares can secure an end of day close above recent resistance around 37.5p, the implication is a move toward the top of the broadening triangle, which points to 55p next month. The broken resistance line around 35p now becomes the level to hold.
Delta Gold: gap higher improves the outlook: Delta Gold has also frustrated the bears. A recent gap higher toward 150p has shifted the tone after the shares had threatened to slide back toward £1 only last week. Even with the shares a little flatter on the day, the chart remains positive above broken resistance at 135p. If that support holds, the technical target remains £2 by the end of next month. The main thing to watch is the floor of that gap. If it stays intact, the bullish case remains alive.
Evoke: orderly recovery setup: Evoke looks like one of the smoother recovery charts in the pack. The shares are trading within a rising trend channel, with an initial target near 48p and then potentially 60p by the end of next month. This setup remains valid while the shares stay above recent broken resistance and the 200 day moving average at 36p. It is not the sort of chart that needs drama. It just needs to keep doing what it has been doing.
Gelion: improved after breaking key resistance: Gelion had a strong update and the chart has responded accordingly. The shares have broken through both the 200 day moving average and March resistance at 19p. That leaves the stock looking capable of heading toward the top of its rising trend channel, with 35p as the next meaningful target.
Itaconix: a gap through the 200 day line matters: Itaconix has produced an encouraging gap above the 200 day moving average and through the 120p level. If the shares can close above 120p and stay there, the next objective is the top of the channel and trading range around 143p by the end of next month. The 200 day line, currently around 113p, is the obvious support to monitor.
Raspberry Pi: channel target points to £10: Raspberry Pi continues to make solid progress inside a rising trend channel that has been in place since the end of February. The top of that channel points to £10, and that remains the target while the shares hold above £8, which roughly matches today’s low. At a stretch, recent support around £7.70 is also relevant, but ideally the stock stays north of £8.
Solid State: strong chart after clearing channel resistance: Solid State still looks very strong. After a brief wobble, the shares have moved through the top of a rising trend channel near 195p. That opens the way to the upper parallel of the broader rising channel from last July, which points to 235p by the end of next month.
Sulnox: an Aquis chart with breakout potential: Sulnox, one of the less frequently discussed names, has just broken recent resistance at 60p. The next upside target is 115p, based on the expectation of a forthcoming golden cross between the 50 and 200 day moving averages. The chart has also gapped up through the 50 day moving average and then moved sideways above a rising 50 day line, which is often the sort of pause that precedes a stronger advance.
Synthomer: targets keep getting taken out: Synthomer has been one of the stronger trending charts, with one technical target after another already met, the latest around 117p. The next level in sight is 160p, based on an August resistance line projected from last year. That target could come into play by the end of this month, or potentially even sooner if the current momentum persists. The strength here is underpinned by the golden cross already in place, and the chart still looks robust.
Entain: bid speculation adds interest, but the chart also helps: Entain is back in focus on takeover speculation involving a US party. The company has rejected bids at higher levels in the past, which has not exactly aged well, but the chart itself has improved. The 50 day moving average is now rising and the shares have gapped higher. On that basis, a minimum target of 670p looks reasonable. The bullish case remains valid while the stock stays above the 50 day moving average at 558p.
Final market take
The broad picture is mixed. The DAX and Dow still look constructive, the FTSE 100 needs to reclaim and hold an important moving average, and crypto remains the weakest part of the board with Bitcoin and Ethereum both threatening deeper retracements.
Gold is in retest territory, crude has yet to turn technically convincing, and several individual stocks are still producing some of the best looking setups around, especially where failed breakdowns have turned into squeezes higher.
For now, key levels are doing most of the talking. Hold them, and the bullish cases remain alive. Lose them, and the tone changes quickly.
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.
