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, Empire Metals, Goldplat, Hvivo, Mkango, Shoezone, and Strategic Minerals.
The broader market picture is still mixed, but not without opportunities. Some major indices are holding up reasonably well, crypto is trying to stabilise, gold remains frustratingly weak, crude is at an interesting technical juncture, and a handful of smaller stocks still offer constructive setups if key support levels continue to hold.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Here is the latest technical view across the FTSE 100, DAX, Dow, Bitcoin, Ethereum, gold, WTI crude oil, and a selection of UK shares including Empire Metals, Goldplat, hVIVO, Mkango, Shoezone and Strategic Minerals.
FTSE 100: Momentum Still Lacking
The FTSE 100 continues to look awkward. What stands out most is the repeated failure around RSI 50. There have now been four such failures, which is not the kind of behaviour you want to see if a market is preparing for a sustained push higher.
Price briefly pushed through last week’s resistance around the 10,380 area, but that move has turned into something of a bull trap. The index has since slipped back below the 50-day moving average, which sits around 10,326 to 10,328.
That leaves the door open for another test of the floor of the rising trend channel from October. Given how many times that support line has already been tested this month, the hope is that any further visit will mark a durable floor and a buying opportunity rather than the start of a deeper breakdown.
For now, the upside appears capped while RSI remains below neutral 50.
- Key support: floor of the rising trend channel from October
- Near-term resistance: 10,400 to 10,500
- Bias: cautious unless momentum improves above RSI 50
DAX: Still Constructive Above the Key Averages
The DAX looks a good deal healthier. It remains on the right side of an uptrend line from March, and more importantly it is also above both the 50-day and 200-day moving averages. RSI is above 50 as well, at around 53, which keeps the broader picture constructive.
The chart suggests either a rising trend channel or a rising wedge, but either way the market is still trending in the right direction as long as it holds above the 200-day moving average near 24,100.
If that support remains intact, there is scope for a move towards 25,000 by the end of next month.
- Key support: 24,100 at the 200-day moving average
- Secondary support: 23,760 at the 50-day moving average
- Upside target: 25,000 by end of next month
Dow: Rangebound but Still Strong
The Dow has been locked in a range for roughly a month, but the structure remains solid. The key trading band is roughly 48,700 to 50,000.
A break through 50,000 would be significant and could open the way to 52,000, in line with a projected resistance line dating back to November.
On the downside, even if there is a rug pull, the hope is that the 50-day moving average around 48,000 provides support. Both the 50-day and 200-day moving averages are rising, and RSI remains above 50, so this is still a strong chart, especially considering how close the index remains to record territory.
- Range support: 48,700
- 50-day moving average: 48,000
- Breakout level: 50,000
- Upside target: 52,000
Bitcoin: 50-Day Moving Average Holding the Fort
Bitcoin has delivered a decent technical response by bouncing from the 50-day moving average and, crucially, managing to hold above it rather than just touch and fail. That average is currently around 76,000.
As long as that level continues to act as support, the market has a fair chance of retesting the top of the February channel near 81,000. There is also the 200-day moving average in that same area, around 81,100, making that zone especially important.
If Bitcoin does break lower, then the current downside expectation is for a move towards the floor of the February rising trend channel around 70,000. For now though, the more encouraging interpretation is that support at the 50-day line may be enough.
- Immediate support: 76,000 at the 50-day moving average
- Near-term target: 81,000 to 81,100
- Deeper support if support fails: 70,000
Ethereum: Weaker Than Bitcoin, but Still Trying to Rebound
Ethereum remains the weaker of the two major crypto charts. It has bounced from the floor of its February rising trend channel, which is at least a start, but it has not shown the same resilience as Bitcoin.
The main near-term rebound zone to watch is around 2,262, where the 50-day moving average comes in. If Ethereum can reclaim that area cleanly, it would improve the short-term picture.
If not, then the next major support remains the area around 1,900, which has been important since February.
- Rebound zone: 2,262 at the 50-day moving average
- Major support: 1,900
- Bias: weaker than Bitcoin, but not yet broken beyond repair
Gold: Still Disappointing
Gold continues to frustrate. The chart increasingly looks like a market that wants to test its 200-day moving average for the first time in over a year. That level comes in at 4,360.
With RSI around 36, gold is under pressure but not yet technically oversold. That means there is still room for further weakness before the market reaches the sort of washed-out condition that often attracts a stronger bounce.
At the moment, the most sensible approach appears to be patience. Either wait for the 200-day area to come into play or, if the market recovers, watch the October uptrend line around 4,570. Above that, the 50-day moving average at 4,691 becomes the maximum near-term upside reference.
- 200-day moving average: 4,360
- Trendline resistance: 4,570
- 50-day moving average: 4,691
- RSI: 36, weak but not oversold
WTI Crude Oil: Resistance First, Then Possibly Higher
WTI crude has run into a wall of resistance around 105.80, now drifting lower towards roughly 104.30. Even so, the chart has not rolled over completely. RSI is still above neutral 50, which leaves room for another attempt to break through the 105 area.
If that happens, the next upside objective would be 110.
However, the more likely short-term path may be a pullback towards the 50-day moving average and the floor of the rising channel from January, which sits around 98 dollars. Even a retreat to that area would not necessarily damage the broader structure if the market then resumes higher within the channel.
The wider channel points to very ambitious levels, potentially even as high as 140, but that looks a stretch for now. A more realistic upside path may be the narrower rising channel, which would imply a target somewhere in the upper 120s if momentum improves.
- Resistance: 105 area
- Breakout target: 110
- Support: 98 at the 50-day average and channel floor
- Longer-term potential: upper 120s looks more realistic than 140 at this stage
Stock Setups to Watch
Empire Metals: Gap Support Holding Firm: Empire Metals continues to show a decent technical setup. The stock gapped up earlier in the month and, importantly, has held the floor of that gap without needing to fill it. The gap support around 31.5p has therefore become a bullish reference point. There has also been a rebound around and just below the 50-day moving average, adding to the constructive tone. As long as the shares remain above the 50-day line near 32p, there is scope for a move towards 42p at the top of the channel.
Goldplat: Quietly One of the Better Charts: Goldplat looks like one of the more underappreciated setups. The shares remain in a rising trend channel that has been in place since September, and the chart still points towards the top of that channel near 20p by the end of next month. The key condition is that the stock stays above the 50-day moving average at 14p. Momentum also looks supportive, with a double rebound around RSI 50, which often helps reinforce the idea that the broader uptrend is still alive.
hVIVO: Stable Above Support, Watching 8.1p: hVIVO has been relatively stable and that in itself is encouraging. The shares are above both the 50-day and 200-day moving averages, clustered around the 7p to 7.5p area. The next key test is a clean break of recent resistance at 8.1p. If that gives way, the chart would be aiming to fill the gap towards 9p over the next month or so. For now, the important point is that the stock appears to be holding comfortably above 7.5p.
Iofina: Mid-Move Consolidation?: Iofina appears to be shaping up as a mid-move consolidation, which is often a healthy pause rather than a sign of failure. The current base looks to be around the 44p to 50p area. If the shares can break decisively through 50p, the next target would be 60p, potentially by next month or even sooner.
Mkango: Holding Above the 50-Day Line: Mkango has had some meaningful deal-making news, and while the share price reaction on the day was flat, the chart remains reasonably supportive. As long as the stock remains above the 50-day moving average at 44p, the view remains positive for a move towards the top of the recent range at 51p, possibly by the end of next month. Ideally, recent support at 42p continues to hold.
Shoezone: A Bear Trap Turning Into an Island Reversal: Shoezone is not the most exciting stock in the market, but technically it has become a bit more interesting. The recent action resembles a bear trap and, more notably, an island reversal. The pattern came from a gap down followed by a gap up through May resistance at 47p. That kind of move can mark a change in sentiment, especially in a previously dull chart. If the reversal sticks, the shares could move towards the top of the range near 60p by the end of next month, possibly sooner.
Strategic Minerals: Needs to Reclaim 5p: Strategic Minerals had a notable company update, but the chart still needs repair. The shares are sitting near or just below the nominal floor of a rising trend channel, so the immediate task is clear. The stock needs to get back above 5p on an end-of-day closing basis. If it can do that, the chart would open up the possibility of a move to 6p by the end of next month.
Final Market Read
The standout theme across the charts is selectivity. The FTSE 100 and gold remain unconvincing, while the DAX and Dow are in better shape structurally. Bitcoin is trying to reassert itself above trend support, Ethereum is lagging, and crude remains one decent breakout away from another leg higher.
Among the smaller stocks, the better-looking setups are generally those holding above their 50-day moving averages and preserving breakout structures rather than chasing fresh momentum. Empire Metals, Goldplat, hVIVO and Iofina all fit that description to varying degrees, while Shoezone has suddenly developed one of the more interesting reversal patterns.
For now, the key is to respect the levels. In this sort of market, support and resistance are doing most of the talking.
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.
