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, Bezant, boohoo, Cadence, First Class, Gem Resources, Geiger Counter, Hardide, Invinity, Mercantile Ports, Poolbeg, Shuka, Venture, Wolfram.
Markets are still stuck in that awkward phase where plenty of charts are moving, but not many are doing it with real conviction. In a few places the setups remain constructive, in others the weakness is becoming harder to ignore, and across several major assets it still feels like traders are waiting for the next clear macro trigger before committing properly.
Here is the latest technical picture across the FTSE 100, DAX, Dow, Bitcoin, Ethereum, gold, crude, and a batch of UK small caps that are either shaping up nicely or already delivering.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
FTSE 100 still orbiting the 50 day moving average
The FTSE 100 continues to hover around its 50 day moving average, which has at least started to edge higher. That is a mild positive and puts the focus back on a move toward the top of the recent range.
The area to watch on the upside is 10,550. If the index can regain momentum, that remains the obvious near term destination.
On the downside, the main risk would come from a proper end of day close below the 50 day line. If that happens, the chart opens up to the lower boundary of the channel around 10,220.
For now, though, the broader feel is one of stagnation rather than collapse. The market looks more tired than bearish, and unless there is a fresh catalyst, the FTSE may simply continue to drift within its range.
DAX below 25,000, but the bigger setup is not broken
The DAX has also been fairly lifeless, and the gap back below the January resistance line at 25,000 is clearly not ideal. That move leaves the index on the wrong side of what had looked like a strong round number breakout.
While the DAX remains below 25,000, the possibility of a pullback toward 24,700 and the lower March channel support has to stay in play.
That said, the chart is not without encouragement. The 50 day and 200 day moving averages are closing in on a golden cross, which is often one of the stronger phases in a trend cycle. It has not yet translated into explosive upside, but it does support the idea of a stronger move later this month.
As long as the DAX holds above the channel floor, the broader target remains 26,200 by the end of June. The RSI is also still holding above the neutral 50 mark, currently around 55, which keeps the medium term bias positive.
Dow still stretching higher
The Dow remains one of the more straightforward charts in the pack. The index continues to push on, and the main upside objective is still the resistance projection from November toward 53,000.
That target remains valid while the Dow stays above 50,000. Any retreat into that area is still being treated as a buying opportunity rather than the start of a larger reversal.
Unless 50,000 gives way decisively, the path of least resistance still looks higher into month end.
Bitcoin slipping back toward key support
Bitcoin has fallen back below 70,000 and, more importantly, beneath the lower boundary of the rising trend channel that had been in place since February. That lower channel line came in around 70,700, so losing it matters.
With that breakdown in place, the chart has been pointing toward a retest of the March support zone around 65,000, and price has already come close to that area.
The mood around Bitcoin also looks less buoyant than it did earlier in the year. Corporate buying enthusiasm appears to have cooled considerably, which leaves the market with less of the headline support that previously helped sentiment.
Unless Bitcoin can reclaim the broken channel support quickly, the pressure remains on the downside.
Ethereum looks weaker than Bitcoin
Ethereum has been in even worse shape. The support band around 1,900 to 2,000 dollars has given way, which removes what had been an important cushion for the market.
That shifts the focus toward a retest of the February support near 1,760 dollars. While Ethereum remains below the old March support area around 1,930 dollars, that lower target continues to dominate the setup.
There are several negatives here:
- The 50 day moving average is falling.
- The 200 day moving average is also falling.
- Price is still sliding despite the RSI being deep in oversold territory.
The RSI is around 25, which is well below the usual oversold line near 30. Normally that might encourage bargain hunting, but when a market keeps falling even in heavily oversold conditions, it usually signals deeper weakness rather than imminent recovery.
Gold caught between the 50 day and 200 day moving averages
Gold is still trapped between its key medium and longer term moving averages. Last week there was a strong bounce from the 200 day line, but this time the market looks more likely to drift back down toward that support instead of launching immediately higher.
The 200 day moving average sits around 4,418, and that is the main downside reference point. Beneath that, last week’s support around 4,355 is another important level.
If you are constructive on gold, this is the sort of setup where you would be thinking about resting buy orders just below the 200 day line or just under the recent support zone.
On the upside, the best near term outcome looks like a recovery toward the 50 day moving average, currently around 4,631.
WTI crude bouncing strongly
Crude has rebounded firmly, helped by geopolitical tension. The original expectation had been for the 50 day moving average near 97.50 to cap the upside, but the strength of the move means that target may now be too conservative.
The next resistance area comes from the descending line off the April highs, sitting just under 100 dollars, roughly around 99.60.
While crude stays above the recently broken resistance at 94.80, the market deserves the benefit of the doubt on the upside.
Small cap stock charts to watch
Bezant Resources: Bezant is shaping up well, with the possibility of a golden cross appearing over the next week or so. The RSI has bounced back above 50, which adds to the positive tone. The current consolidation is being treated as a bull flag, with the shares moving sideways above a rising 50 day moving average. As long as the price remains above the 50 day and 200 day averages around 0.08p, the target remains the top of the range and channel at 0.16p by the end of next month.
Boohoo Group: Boohoo is one of the more interesting recovery charts, especially now that the fundamentals seem to be improving alongside the technical picture. The shares have broken the resistance line from December around 20.66p, and that opens the way toward the top of the channel at 32p. That upside view stays in place while the shares hold above the 20p area.
Cadence Minerals: Cadence has already done a lot of the heavy lifting. The move above February resistance around 5p set the stock up well, and the previous target near 8p has effectively been reached. Because of that progress, the upside objective can now be lifted toward 11p, which matches the upper boundary of the rising trend channel in place since August. The bullish case remains valid while the shares hold above the 50 day moving average, now around 5.68p.
First Class Metals: First Class has delivered impressively, especially considering how difficult the setup once looked. The second target around 3.75p has now been met. Above that, the next major resistance from the last two years comes in around 5p to 5.4p, and that is the area to watch by the end of this month. Ideally, the shares now remain above the latest gap support at 3.4p.
Gem Resources: Gem Resources is another chart that looks strong. The price is bouncing above a rising 50 day moving average, the 200 day line is also moving higher, and that combination points toward a potential golden cross. If the shares can clear the January and February resistance around 4p, the pattern suggests a move toward the top of the triangle at 8p by the end of next month. While the stock stays above the 50 day line, the technical picture remains very constructive.
Geiger Counter: Geiger Counter has not been in the spotlight recently, but the chart is starting to improve again. The key level is the January resistance line near 74p. A break above that would target 95p by the end of next month. The setup is supported by rising 50 day and 200 day moving averages, which gives the trend a solid foundation. The bullish case is strongest while the shares stay above the recently broken resistance around 70p.
Hardide: Hardide continues to be one of the standout names, both fundamentally and technically. The near term target remains 75p by the end of this month, but the pace of the move suggests that may not be the end of it. If the current trajectory continues, the shares could potentially work toward 95p by late summer. For now, the chart remains firmly positive while the price holds above the old target zone around 60p.
Invinity: Invinity is another stock benefiting from stronger fundamentals and a healthy chart. The shares are breaking into new high ground, and the upper boundary of the rising trend channel from April last year points toward 44p by the end of this month. When a stock is making new highs inside a rising channel, the trend normally deserves respect until proven otherwise.
Mercantile Ports: Mercantile Ports has been volatile, but the current shape looks a bit like a triangle. While the shares remain above near term support at 1.22p, the chart points to at least a return toward the 2.4p area in the near future. The setup is helped by a sharply rising 50 day moving average and RSI support above 50, both of which favour the upside.
Poolbeg: Poolbeg has already beaten the first target at 7.9p, so attention now turns to 11p by the end of next month. To keep the move intact, the key requirement is for the shares to stay above today’s support level at 7.45p.
Shuka: Shuka has seen fresh company news, and the chart is beginning to respond. A rising trend channel has been developing since February. The key trigger is a proper break above 3p. If that arrives, the initial target becomes 3.75p by the end of this month. Ideally, the stock now holds above its 50 day moving average at 2.86p.
Wolfram Resources: Wolfram is a newer chart and therefore harder to analyse with confidence, simply because there is less price history to work with. Still, the recent rise has been very steep and the best current estimate for the top of the channel is around 2.3p. That upside view remains in place while the shares stay above the recently broken resistance near 1.5p.
The main takeaway
The bigger indices are still mixed. The Dow looks strongest, the DAX remains constructive despite slipping below 25,000, and the FTSE is still struggling to break out of its holding pattern.
In crypto, the tone is noticeably weaker, especially in Ethereum. Gold is close to support rather than strength, while crude has regained some momentum thanks to geopolitical pressure.
Among the smaller stocks, the charts are much more interesting. Several names are either on the verge of golden crosses, breaking resistance, or already extending established uptrends. In a market that feels hesitant at the top level, those individual setups may be where the better opportunities are appearing.
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.
