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, Gold, Aminex, Arecor, Critical Mineral, CAP-XX, Ensilica, Ferrexpo, Made Tech, Nativo, Pensana, Predator, Rome Resources, and THG.
In this update, I walk through the big-picture technicals on the FTSE 100, DAX and Dow, check cryptocurrencies and gold, then run through a selection of small-cap charts that caught my eye. Below you’ll find the same market signals and price levels I discussed on the video, with quick takeaways and the key support/resistance levels to watch.
Market overview: FTSE 100, DAX, Dow
FTSE 100
The FTSE is currently sitting right on the June uptrend line and the top of the old 2024 rising trend channel from spring. The magic number to watch is around 9,060 — we bounced off that level on Friday (low ~9,080), so there’s a little wiggle room.
Key levels and outlook:
- Bullish while > 9,060.
- Near-term target: 9,240 (May resistance projection) by the end of the month.
- Best-case target: ~9,400 (upper parallel of the June uptrend line).
- Downside risks: August low 9,027, then the 50-day line near 8,918–8,919.
- RSI sits ~58 — supportive of further upside.
DAX
The DAX is being pinched by a July resistance line that keeps getting in the way. What we need is an end-of-day close back above 24,400 to give the index a clean run toward the top of the rising trend channel (~25,400).
Key levels and outlook:
- Near-term resistance: 24,400 — needs an end-of-day close above this.
- Channel downside: lower parallel around 23,400; worst case a re-test of the 23k–24k area.
- Support: 50-day line ~23,900 and RSI ~53 (back above neutral after a shaky period).
- Overall: still “half full” rather than half empty — bulls have a shot if 24,400 holds.
Dow
The Dow has been messy but constructive: two recent bounces — one below and one above the rising 50-day line. The close of the week left the RSI just above neutral 50, which is encouraging.
Key levels and outlook:
- Current trading band: ~44,000–45,000.
- Near-term upside: break 45,000 and the next target is ~47,400 (top of the May 2024 channel).
- Downside risks: 50-day line ~43,600, 200-day ~42,900, and the channel floor ~42,400.
- Assumption for now: 50-day line holds and we try again at 45,000.
Cryptocurrencies
Bitcoin
Bitcoin is looking gradually better. We remain above the July support zone (around 115k in the chart scale used), which was our minimum requirement for a bullish stance.
Key levels and outlook:
- Support: old May peak ~112k and the 50-day line ~113k (the market bounced off these).
- Near-term trigger: an end-of-day close through 121k should open the way toward the top of the channel (~131k) — potentially by the end of this month.
- RSI has rebounded through 50 — often a leading indicator for more upside.
Ethereum
Ethereum has actually been out-performing Bitcoin recently — we were targeting 4,400 by month-end and it moved up to ~4,329. We’re now in record high territory.
Key levels and outlook:
- Near-term objective: 4,500 in the coming days.
- Stretch target: 5,500 by the end of next month (second upper parallel of the March rising trend channel).
- Technical strength: multiple RSI 50 rebounds earlier in the month helped fuel this rally.
Gold
Gold continues to struggle around the April resistance line near 3,430. We haven’t made a sustained break to fresh record highs on the chart I’m watching.
Key levels and outlook:
- Resistance: 3,430 — a break could see 3,800 (timing dependent on news flow).
- Support: floor of the channel ~3,320 and the 50-day moving average ~3,350.
- Technical positives: rising 50-day line and an RSI rebound above 50 — not explosive, but constructive.
Selected small-cap charts
I ran through a batch of smaller names — here are the charts, levels and what to watch for each.
- Aminex Shares hit the target at 1.9p right on the nose last week. The upper parallel of the rising trend channel from March points to 2.5p — that’s the target into next month. We’ve seen three clear RSI 50 rebounds; recent swing low 1.6p is the downside guard.
- Arecor Therapeutics Nice “step” style ascent. First target of 59p was hit; initial gap-fill target sits at 74p and the upper parallel of the rising channel from February is 88p — an ambitious target by end-September but the 74p gap fill is a nearer-term objective.
- Critical Mineral Resources Delivered on the initial target of 1.7p and cleaned through 2p. Above 2p the next resistance is the old decline’s resistance around 2.75p (target by the end of next month). Both the 50- and 200-day lines are rising in parallel — a golden cross looks likely within a week or two. Recent candles show strong buying (opens at low, closes at high).
- CAP-XX Chart worked as expected. We’ve built a rising trend channel after multiple gaps higher; main resistance now 0.58p (target by end of next month) while we remain above the recent gap top (0.33p). RSI has rebounded through 50 — constructive.
- EnSilica Finally broke out of a falling trend channel from last August. Above 45p the chart suggests a run toward 59p by the end of next month. Strong RSI recovery in recent sessions.
- Ferrexpo I’d suggested the gap to 63p if peace-talk optimism appeared; Friday hit 60.9p. The 200-day moving average sits near 71p — that’s the next level to watch (possible by end of month if momentum continues). Key support: recent broken post-June resistance at 51p — staying above that keeps bulls in charge.
- Made Tech Moving inside a rising trend channel since summer 2023. Top of that channel 48p (target by end of this month). Trend remains valid while the 50-day line (34p) holds.
- Nativo Resources This had been a painful bear market but showed a dramatic jump Friday (roughly 100% day). I drew a broadening triangle a couple of weeks back with an upside target 0.86p — that now looks less optimistic but still plausible if momentum persists. Support: old July peak 0.48p; intermediate resistance 0.67p.
- Pensana An impressive run, with a current pullback to the floor of the rising trend channel (from March). Multi-day support above a rising 50-day line is encouraging and the RSI has nudged back above 50 (53). Near-term target: retest the 90p zone; best case by end of next month is returning to £1 at the channel top. Keep an eye on the 50-day at ~66p — a daily close below there would be concerning.
- Predator Oil & Gas After a big gap down on an MOU disappointment, the shares formed a U-shaped (or hook) turnaround — often a useful signal. Look for a gap fill and a possible retest of the 200-day line (4.5p) during August, even if the stock falls later. Recent sessions show strong candles (open low, close high) — someone is buying.
- Rome Resources After establishing 0.16 as the low, the shares doubled from April to June. We’ve seen a gap-close buy signal: closing above the top of the gap (0.26) opens room towards 0.40p next month while staying above recent support 0.24p.
- THG Not a name I watch often, but it’s notable that THG is now holding above the 200-day moving average for the first time properly since early last summer. Two recent strong sessions (open low, close high) suggest buyers are present. Minimum near-term upside: 41p by the end of this month, with the key downside guard being the broken neckline resistance at 33p.
Closing thoughts
“”Still half full rather than half empty.””
That pretty much sums up the bias here — a constructive technical picture across a number of major indices and crypto, with lots of interesting setups among small caps. Keep an eye on the key price triggers I’ve mentioned (50-day and 200-day moving averages, RSI 50 rebounds, gap fills and channel boundaries). If you’re trading the smaller names, respect the support levels and use stops — the moves can be punchy.
More chart updates tomorrow — stay tuned and trade carefully.
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.
