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, ACG Metals, CMC, Ethernity, GSTechnologies, Kooth, Raspberry PI, Sintana, Shearwater, United Oil & Gas.
Markets are sitting at one of those awkward but potentially important points where plenty of charts have gone sideways for long enough that the next move could matter more than people think. Some are trying to break higher, some are still stuck in neutral, and a few remain plainly weak.
Here is the full chart rundown across the FTSE 100, DAX, Dow, Bitcoin, Ethereum, gold, WTI crude oil, and a selection of closely watched London small caps.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
FTSE 100 still trapped in a range
The FTSE 100 is still boxed in between its 50 day moving average near 10,385 and the top of the recent range around 10,600 to 10,630. That leaves the market marooned in sideways action for now.
The key thing here is the close. An intraday push is one thing, but what really matters is an end of day break outside that range. Ideally, that would be to the upside.
The RSI is holding above the neutral 50 area, which tilts the bias slightly in favour of a bullish break. If that does happen, 10,700 could come into view over the next few days, although from current levels that still feels a little ambitious.
For now, the cleaner approach looks like buying dips toward the 50 day line. If the market weakens again, the main fallback support remains around 10,330, which was the late June floor.
- Resistance: 10,600 to 10,630
- Support: 10,385, then 10,330
- Upside level if the range breaks: 10,700
DAX trying to bounce from a solid technical base
The DAX is showing more encouraging signs. It has started to rebound from the lower boundary of its March rising channel and from the 50 day moving average near 24,629.
The next hurdle is 25,000. A convincing close above that level would improve the outlook materially and open the way toward the top of the March channel. That gives a possible target as high as 26,300 into the end of next month.
The RSI is around 56, which is constructive and suggests the market is in decent shape to break through the May resistance line.
Of course, if the rally fails and the market gets pulled out from under it, the 200 day moving average around 24,256 becomes the obvious downside reference point.
- Trigger: close above 25,000
- Upside target: 26,300
- Fallback support: 24,256
Dow looks more cheerful with a rising flag setup
The Dow is looking noticeably better than it did recently. The pattern resembles a rising flag, with price holding above old resistance and printing higher lows.
The top of the rising trend channel from April comes in around 52,600. A move through there would point toward 53,800, based on a projection from a November resistance line, possibly by the end of next month.
On the downside, the hope is that the market can stay above 51,000 in the near term. As long as that floor holds, the chart remains on a firmer footing than it has been.
Bitcoin remains dull and vulnerable
Crypto has been painful, and Bitcoin still looks heavy. The whole bitcoin treasury theme has lost some of its noise lately, aside from a few names that continue to add exposure.
Technically, the focus remains on the support line projected from April, which points toward 53,000. While price stays below the May resistance line just under 62,000, the market remains under pressure.
There are mild signs of a rebound from oversold conditions, but not enough yet to trust. If anything, the drop in volatility makes the chart more concerning, not less, because quiet markets can still drift lower.
- Resistance: just under 62,000
- Support projection: 53,000
- Current read: weak and dull, with downside risk still present
Ethereum holding support, but momentum is poor
Ethereum is broadly echoing Bitcoin, although one difference is that it has managed to find support around the first June floor near 1,510.
If that support continues to hold, a recovery toward around 1,670 is possible. Even so, it is difficult to get too excited beyond that because momentum indicators are still uninspiring and both the 50 day and 200 day moving averages are falling sharply.
The more negative scenario is a move toward the support line from last August, which projects down to roughly 1,280 over the next month.
- Near support: 1,510
- Bounce potential: 1,670
- Worst case projection: 1,280
Gold is not in great shape
Gold does not look especially healthy at the moment. There is some support around 3,920, which ties in with prior support from October and a rising support projection from February.
However, while the market remains below 4,100 resistance, the risk is that it drifts lower toward the bottom of the broader channel, potentially around 3,615.
That would be the more uncomfortable outcome, but it remains on the table unless gold can reclaim the 4,100 area.
- Support: around 3,900 to 3,920
- Resistance: 4,100
- Bearish channel floor: 3,615
WTI crude oil nearing a possible gap fill
Crude oil is getting close to doing what looked likely for some time, namely filling the gap down toward 68.00. That area could offer at least an intermediate buying opportunity.
The zone is reinforced by the late February high near 67.83, which sits around the floor of that gap. So that is the main support area to watch.
If that fails, the falling trend channel points to the possibility of prices sliding below $60. The broader pattern remains negative while crude stays below the 200 day moving average at 74.10.
At the moment, the path of least resistance still looks lower
The broad takeaway
The main theme across these charts is contrast. Major indices such as the FTSE 100 are still rangebound, the DAX and Dow are improving, crypto remains uncomfortable, and commodities are mixed to weak.
Among the small caps, the more attractive setups tend to share a few traits:
- Sideways consolidation above a rising 50 day moving average
- Fresh breaks through nearby resistance
- RSI readings that are constructive without being overbought
- Clear price levels that define risk and reward
Names such as GSTechnologies, Kooth, Raspberry Pi and ACG Metals fit that bill better than most. On the other side, Bitcoin, Ethereum, gold and crude still need to prove they can do more than simply pause within broader weak trends.
For now, this remains a market where patience and level discipline matter. The charts are giving clues, but in many cases the decisive move still needs to arrive.
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.
