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, Delta Gold Technologies, 80 Mile, Empire Metals, Great Western Mining, Georgina Energy, Image Scan Holdings, Medpal AI, Poolbeg Pharma, RC365 Holding, Synthomer, Technology Minerals, Tandem Group, Warpaint London
Markets are generally still pointing upwards, although there are a few holding patterns, tight ranges and slightly messy charts to negotiate. The bigger indices have delivered more strongly than expected, while Bitcoin, Ethereum and gold remain undecided. Among the smaller London names, there are several recovery and breakout setups worth keeping on the radar.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
Major Indices
FTSE 100: Holding Below 11,000 Resistance
The FTSE 100 is in a holding pattern just below the resistance line from March, around the 11,000 area. The market has backed away from that level for now, so the key question is where support arrives on any further weakness.
The preferred support zone is around 10,760, which marks the initial resistance from July. Ideally, the index can hold above recent support around 10,820 and avoid a deeper pullback altogether.
An end-of-day close through 11,000 would be the bullish signal to look for. Above that, there is scope for a move towards 11,400 to 11,500 by the end of next month.
The more negative scenario would involve a test of the 50-day moving average near 10,500. For now, though, the bias remains upward rather than downward, provided the mid-10,700s can limit any losses.
DAX: Strength Arriving Earlier Than Expected
The DAX has been stronger than anticipated. A move towards 26,300 had looked possible by the end of the month, but the market has nearly reached that objective much earlier, with a high so far of 26,266.
Providing the DAX can establish itself above 26,300, the next major objective is the upper parallel of the rising trend channel from March, around 27,300.
If there is a more meaningful pullback, broken resistance around 25,600 is the favoured destination. That would be a normal retracement within what remains a constructive rising-channel setup.
Dow Jones: Breakout Opens the Way to 54,000
The Dow has made the break above its July resistance line, and it did so decisively. The first upside target is 54,000, which corresponds with the top of the channel from April.
Beyond that, the bigger target is around 54,900, based on a November resistance-line projection. That could be in play by the end of next month, while 54,000 itself looks attainable during August.
The chart has been a little messy along the way, so it is important to keep downside levels in mind. In the event of a sharp reversal, the 50-day moving average around 51,700 is the area of interest. It also lines up with the April uptrend line, making it the key technical support zone.
Crypto and Commodities
Bitcoin: Still Caught in a Tight Range
Bitcoin remains relatively idle, moving either side of its 50-day moving average without committing to a clear direction. The RSI is below the neutral 50 level, which does not help the immediate bullish case.
While Bitcoin remains beneath the October resistance line at $67,000, it is difficult to argue for a sustained upside breakout. The more likely near-term move is a test of July support around $61,000.
The worst-case chart scenario is a move towards the March support-line projection at $56,000 by the end of the month. Avoiding that outcome requires the market to regain momentum and, more importantly, recover the $67,000 resistance area.
Ethereum: The 50-Day Line Is Doing Its Job, Just
Ethereum is still holding just above a rising 50-day moving average, which is the encouraging feature of the chart. The problem is that the RSI has slipped below neutral 50, while old support around the $1,917 to $2,000 region has turned into resistance during July and August.
Initial support sits at the rising 50-day line around $1,784. A break below that would be disappointing and could leave Ethereum exposed to a move down towards $1,550.
For now, the assumption is that the $1,700 zone should be the limit of any pullback. But the market needs to reclaim the old $2,000 support area to put a more convincing upside case back on the table.
Gold: Rangebound Inside a Small Falling Channel
Gold has lost the excitement seen earlier in the year and is now trading in tight ranges. The chart is effectively contained within a small falling trend channel from last month.
- Channel floor: approximately 3,920
- Channel ceiling: approximately 4,110
There is little sign yet of a breakout beyond those parameters. With the RSI continuing to fail around neutral 50 and remaining below it, the more likely outcome is a test of the 3,900 area, even if gold manages a bounce afterwards.
WTI Crude Oil: A Messy, Headline-Driven Market
Crude oil has been moving around on political headlines and daily comments from Donald Trump. It has been volatile enough to produce two gaps down, followed by an attempt to recover back above the 50-day moving average at $80.65.
If oil can hold above that moving average, the recovery target is the $85 to $87 zone, with $87 representing the top of the visible gap. However, this is a messy market and looks more like day-trader territory than a clean medium-term trend.
- Potential long-entry area: the 200-day moving average around $76.31
- Potential short-entry area: around $87 at the top of the gap
Key Levels to Keep in Focus
- FTSE 100: 11,000 breakout level, 10,760 preferred support, 11,400 to 11,500 upside target.
- DAX: 26,300 breakout level, 25,600 pullback support, 27,300 channel target.
- Dow Jones: 54,000 first target, 54,900 larger objective, 51,700 key support.
- Bitcoin: $67,000 resistance, $61,000 support, $56,000 risk level.
- Ethereum: $1,784 initial support, $1,700 key zone, $2,000 resistance.
- Gold: 3,920 channel floor and 4,110 channel ceiling.
- WTI crude: $80.65 recovery pivot, $76.31 support, $87 gap resistance.
The broad picture remains one of selective opportunity. The major indices are still constructive, but several assets are sitting at pivotal technical levels. In the smaller-cap space, the most interesting charts are those combining rising moving averages, successful support tests and clear breaks through recent resistance.
Targets are only as good as the support levels beneath them. Keep the invalidation points in mind, particularly in the more volatile crypto, commodity and bulletin-board names.
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.
