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, Artemis, Ascent, Catenai, Cadence, Capital Metals, Cloudbreak, Defence, Europa, Future Metal, Fusion Antibodies, Genflow, Oscillate, and Upland.
Below I summarise the key technical setups, the levels that matter, and what I’m looking for over the coming days and into the end of next month.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Quick market snapshot
The picture is mixed. European markets have shown more weakness recently while the US indexes only just began to give back some gains after fresh highs. Cryptocurrencies remain in their respective rising channels but RSI readings are weak in places — so momentum confirmation will be important. Gold looks like it could run higher if it breaks the September resistance decisively. On the small-cap front there are several clear technical setups that could lead to meaningful moves if key levels hold.
Major indices
FTSE
The market has produced multiple failures around 9,250 and is now testing the floor of the rising trend channel that began in June. We came dangerously close to the 50-day line at 9,167 — a test we anticipated but seeing it happen is always a bit concerning.
- What I want: an end-of-day close back above 9,200 (the channel floor) to keep the path to 9,500 by the end of next month intact.
- If we fail to hold 9,200: risk of a test of September support near the 9,100 zone.
- RSI is sitting right on 50 — neutral, so we need a directional read from price or momentum to bias the next move.
DAX
The DAX has already tipped down but remains notionally inside the rising channel that started in April.
- Channel floor around 23,400; immediate upside target is the 50-day line near 23,960.
- RSI below neutral at about 45 — this warns of downside risk. A worst-case scenario would be a test of the 200-day line near 22,700.
Dow
The Dow had been in a different world to Europe, but it succumbed to some profit-taking yesterday. We remain above the broken resistance around 45,000, which remains important.
- While above 45,000 I’m looking up to the top of the channel near 47,700 by the end of next month.
- Recent price action shows a pullback from a temporary record high — watch whether 45,000 holds as support.
Cryptocurrencies
Bitcoin
Bitcoin is trading on the floor of its rising trend channel that started around the end of February / start of March. The market is bouncing around the 111 level and the next short-term objective is the top of the recent range near 118.
- If price can break above 118 and RSI climbs back above neutral 50 (it’s currently ~44), the channel target could extend toward 133 by the end of next month.
- If it breaks down, the perceived downside support sits near 107 (the 10th-of-month support).
Ethereum
Ethereum had a frustrating pullback but so far has held the mid-August support around 4,070. While above that level the more conservative target is a rebound to the 50-day line around 4,397.
- Best case: staying within the July rising channel and reaching as high as 5,300 by the end of next month — though that currently feels optimistic.
- Momentum check: RSI is around 39 and needs to reclaim 50 for a more confident bull case.
Gold
Gold has been pushing up toward the top of a long-standing channel that stretches back to April. The channel top is aiming for about 3,870 and that target was my objective for the end of next month.
- Near-term: an end-of-day close above initial September resistance at ~3,680 would validate a mid-move consolidation breakout.
- If breakout holds, 3,870 could be the minimum near-term upside.
Selected small-cap charts
Below are the stocks I covered today with the levels and scenarios I care about. These are technical reads, not fundamental recommendations; always do your own research.
Artemis Resources
- Above the 50-day line at 0.3p the target is the top of a broadening triangle from the turn of the year near 0.58p by the end of next month.
- Wait for an end-of-day close through 4p mid-price (note: I mean the clear daily close through the 4p area) — recent RSI behaviour (50 rebound) supports the upside while above the 50-day.
Ascent Resources
- Strong recovery: we cleared the level I wanted to see at 0.43 on an end-of-day close and that has become support.
- Chart path: not much between the June peak around 0.55 and the old May support; an end-of-day close above 0.55 could see a run toward ~0.8p next month.
- Note: arbitration claim is looming — market is already responding positively.
Borders and Southern Petroleum
- In a rising trend channel since last year. The top of that channel is around 11p and a break above should target the upper parallel near 15p by the end of next month.
- Prefer to see price stay above the 50-day line as it works toward that 15p objective.
Catenai
- Sideways shuffle above a rising 50-day and 200-day — the 50/200 regime is setting up for a golden cross, which tends to be very bullish.
- Target: around 0.5p by the end of next month as a minimum while the setup remains intact.
Cadence Minerals
- Delivered the goods on the chart and fundamentals — hit my 6p target early.
- Next resistance on the way up is 8.5p (a 2023 level). While above 6p an end-of-day close higher should open the path to that 8.5p area next month.
Capital Metals
- Interview coverage has helped — price jumped nearly 9% today and already hit a 3.9p target.
- Next level: 5p in the coming days while we remain above 4p. Watch the 6p resistance beyond that.
- Technical note: multiple RSI 50 rebounds (and recently RSI 50+ rebounds) are constructive for further upside.
Cloudbreak Discovery
- Gapped higher earlier this week on news and has held the gap. Previous target around 0.7p is covered and the next resistance is near 0.92p (last month’s peak).
- Best-case while above 0.7p: a retest of the 2023 high around 1.75p by the end of next month — ambitious but possible if the gap holds.
Defence Holdings
- Nice run inside a rising channel since April. The upper channel parallel is progressing toward about 4p; current support near 3p.
- Expect some retracement after a strong run, but upside to 4p is the medium-term objective while above 3p.
Europa Oil & Gas
- Initial target: 1.07p. A weekly close above the old August resistance at 0.97p would open a move toward 1.3p by the end of next month.
Future Metals
- Gapped through our previous target at 1.17p (nice to see a target taken out). Next resistance and channel parallel from November sits around 2p — I’d expect that by the end of next month or sooner.
- Rising without news suggests something could be coming; markets often price-in anticipated announcements.
Fusion Antibodies
- Second-time-lucky breakout through 17.6p after a mid-move consolidation. The initial target after the 14p breakout was 22p — looks achievable over the next few days.
- While above 18.75p, it’s sensible to start thinking about higher targets; preliminary thinking is toward 32–33p as a best-case next-month objective.
Genflow
- Finally behaving like the biotech I hoped it would — around 2.5p now and the path stays open while we hold the top of the gap near 1.4p on an end-of-day close basis.
- Several RSI 50+ rebounds have provided technical support to the rally.
Oscillate
- Not a widely-followed name, but fieldwork news today produced a strong response. Chart shows a broadening triangle with the top near 0.62p.
- We’re breaking the 200-day line at 0.42p; above that look for a move toward 0.62p by the end of October. The 50-day is starting to curl up which supports the upside case while above the broken resistance of 0.35p.
Upland (the punter’s favourite)
- We’ve hit the first target near 1.55p at a resistance line. An end-of-day close above that opens the path to 2p by the end of next month.
- Both 50- and 200-day moving averages are rising and a golden cross could occur in the next week or two — the run-up to a golden cross is often the strongest leg in the cycle.
What I’m watching next
Across the board, the key is to watch price relative to the important moving averages and the specific levels listed above. RSI readings are giving early warnings in some markets (notably Ethereum and the DAX), so confirmation from momentum is important before assuming the bullish case. For small caps, clear end-of-day closes through the levels I’ve highlighted will change the risk/reward and open the next targets I’ve laid out.
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.
