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, Chill, Contango, CAP-XX, Cadence, Enwell, Empire Metals, First Development, Manx, Sealand, Tower.
In this update, I run through the charts I’m watching right now: FTSE 100, DAX, Dow, Bitcoin, Ethereum, Gold, and a selection of small‑cap boardroom movers. Below is the technical picture, key levels and my short‑term targets — the things I’ll be watching for over the coming weeks.
Quick market summary
Global indices are generally trading inside established rising channels that began in spring. Momentum readings are positive in most cases, but there are some cracks — particularly in crypto and gold — that leave room for short dips. I’ll cover each market in turn with the key support/resistance levels and likely scenarios.
FTSE 100
We remain in a rising trend channel that’s been in place since early May.
- Resistance projection: 9,345
- Near-term support: 9,150 — an end‑of‑day close below this would be negative.
- Bullish trigger: an end‑of‑day close through the 9,200 area (briefly broken last week).
- Downside targets: initial support around 9,027 (August support), worst case the 50‑day line (we haven’t closed below that since April).
““We’d like to see an end of day close through the 9,200 area.””
DAX
The DAX is grinding around last summer’s resistance line which the market effectively pushed through and then moved higher — so that old resistance is acting more like a support area now.
- Key breakout level: 24,500 — a clear break should open the run to the channel top around 25,500.
- Near support: 24,000 (50‑day line).
- Worst case: a retest toward 23,000.
- RSI: 55 — comfortably positioned for further upside.
Dow
The Dow is hovering around the 45,000 mark. Momentum and moving averages are constructive.
- Key level: 45,000 — a decisive break higher would target 47,500 (top of last year’s rising channel).
- Downside guard: not expecting much below the 50‑day line just under 44,000.
- Momentum: RSI just below 60 — in a healthy place.
Cryptocurrencies — Bitcoin & Ethereum
It’s a tale of two markets: Bitcoin looks slightly fragile, Ethereum has bounced but needs to prove itself.
Bitcoin
- Trend: notionally slipped below the floor of its rising trend channel.
- Immediate support: the old May resistance area around $112,000 (has held so far).
- Bullish target: still looking to the top of the channel — as high as $132,000 by the end of next month if momentum resumes.
- Downside: worst near $105,000 (July support zone).
Ethereum
- After a recent pullback (5%+ over the week) Ethereum has bounced off the old December resistance.
- Support to watch: $4,100 (the bounce zone).
- Near target: the red resistance projection around $4,500 — possibly within the next few weeks, maybe by month end.
- Bear risk: if that fails, the worst area is $3,800–3,900 (July resistance before the former big move).
Gold
Gold has been struggling near the floor of its rising channel and looks vulnerable to periodic pullbacks.
- Range: roughly $3,310 up to $3,420 (April resistance line).
- Risk: RSI 44 — not great; that leaves the door open for a dip below $3,300.
- Worst case: a pullback toward $3,220 (seen in May/June periodically).
Selected UK small caps — stock watch
Below are the setups I’m watching on the Bulletin Board. These are technical reads — use them as a framework for further research.
Chill Brands
- Nice to see a return of buyers. We closed back above the 1.5p level (the floor of the gap).
- Near target: the 50 & 200‑day moving average area up toward 2.0p.
- Above 1.5p looking for 2p+, but be prepared for volatility.
Contango
- Chart debate aside, 0.8p has held repeatedly as a floor — we’re rangebound between that and the post‑April resistance / 200‑day line (1.1p).
- Need a clean break above that area to confirm a move toward higher targets.
CAP‑XX
- Rising trend channel from April. New support has appeared at old resistance near 0.40p.
- Near target: up toward 0.59p next month (momentum shows three RSI bounces at/above neutral 50).
- Plenty of positive momentum in play while it holds above that 0.40p support.
Cadence
- Finally a proper basing set‑up — first for a long while. Past basing in December stalled (fundraise context), so keep that in mind.
- Near target: 2.5p (top of a broadening triangle), possibly reaching 2.7p (top of the gap) in the coming weeks.
- Currently above the 200‑day line (1.9p).
Enwell
- Broadening triangle from November — top of the triangle heads for 30p by the end of next month if the pattern holds.
- Price is above the 200‑day line (19p) — a constructive technical position.
Empire Metals
- Following the “golden scenario” — the channel from March points to 45p.
- Target: 45p by the end of this month while remaining above 35p.
- Should that break higher, I’d expect more upside thereafter.
First Development
- I’ve drawn a rising trend channel from the end of July — the top points to 11p.
- Key support: well above the 50 and 200‑day averages (6.5p).
- Above 6.5p, looking for the 11p zone as a near‑term technical target.
Max Financial
- Shares have been strong — they’ve already exceeded the initial target 24p.
- Next technical objective: the October 2022 resistance projection of 35p (and potentially higher after that).
- Ideal risk management: stay on the right side of 29p (post‑2023 resistance turned support).
Sealand
- Showing tentative recovery with a second attempt at the 50‑day line; this looks like it will be successful.
- Target: 0.70p (top of the broadening triangle from the end of June) — possibly by the end of next month.
Tower
- Building well above the 200‑day line (0.27p).
- Target range: up to 0.55p by the end of next month — arguably stretchable to 0.60p if momentum accelerates.
What I’m watching next
- FTSE close through 9,200 for a bullish confirmation; failure below 9,150 would be the first red flag.
- DAX above 24,500 would set up the run to 25,500; Dow needs to hold its 50‑day support under 44,000.
- For Bitcoin and Ethereum, the short‑term bounce zones ($112,000 and $4,100 respectively) are critical — a hold there keeps the higher channel targets plausible.
- On the small caps, watch that key support/200‑day lines — many of these names are only bullish while they remain above those moving averages.
Conclusion
Overall, the picture is cautiously constructive: most major indices are inside rising channels and momentum readings are positive. Crypto and gold carry the biggest short‑term risks, and a handful of small caps need to hold their moving averages to validate upside targets. I’ll be watching the levels above closely and will update as price action confirms or invalidates the scenarios above.
More updates tomorrow.
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.
