Zak Mir takes a charting look at some of the most closely followed small caps on the London Stock Exchange. Today’s charts are the FTSE 100, DAX, Dow, Bitcoin, Ethereum, Gold, WTI Crude Oil, SpaceX, Bravura, Bezant, Harena, London BTC, Microlise, Mila, Mulberry, Novacyt, Phoenix, Rightmove, Sealand, Strategic Minerals, Thruvision.
Markets have gone rather quiet, especially in crypto, but some interesting technical setups are still emerging across the major indices, commodities, and UK small caps. The key theme is simple: several charts are consolidating above former resistance, while a handful of shares are showing strong intraday candles and gap-up behaviour that often point to accumulation.
As always, the levels matter. A chart can look constructive, but it needs to hold support and clear resistance before the next leg higher becomes convincing.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major Indices: Holding Above Important Support
FTSE 100: Treading Water Around 10,750
The FTSE 100 has been disappointing, although it was looking worse earlier in the week. The index is now testing the old initial July resistance around 10,750 as potential new support. For the moment, it is just about holding that level.
If the market stays above 10,750, the next obstacle is the top of the current range at 10,820. A sustained move through that area would open the way towards 11,000, which corresponds with the top of the rising trend channel in place since March.
The downside case is relatively contained for now. A break below 10,750 could take the index towards the channel floor and rising 50-day moving average near 10,600. The RSI is just above the neutral 50 level, so the chart has not formally broken down. It is more a case of the market feeling its way sideways.
DAX: A Strong Consolidation Near the Top of the Channel
The DAX remains the stronger European index. It is trading around the top of its rising channel from March, with 26,400 acting as the key near-term reference point.
A move above that level would suggest a run towards 27,300, potentially by the end of next month, or sooner if momentum picks up sharply. On the downside, the preferred outcome is for the index to remain above 26,000. The late July resistance around 25,600 is the more important fallback support.
The technical picture remains encouraging because both the 50-day and 200-day moving averages are rising. This looks like a mid-move consolidation above former resistance, which is normally one of the better setups on a chart.
Dow Jones: Support at the Latest Gap
The Dow is not quite as strong as the DAX, but it is still behaving reasonably well. The index has found support at and above the top of its most recent gap, with 53,600 the initial line to watch.
Ideally, the Dow holds above 53,300, which marks the old July peak and the floor of that latest gap. A more serious reversal would bring the rising 50-day moving average near 52,300 into view, but that is not the preferred scenario.
On the upside, a renewed breakout could send the Dow towards 56,000 by the end of next month, based on the rising trend line from March.
Cryptocurrency Charts: Bitcoin and Ethereum Need a Catalyst
Bitcoin: A Range-Bound Market With a Weakening RSI
Bitcoin has become rather dull, but it remains worth following. The price is hovering either side of its 50-day moving average around $63,500.
Key support sits near $61,300, where early July support comes into play. On the upside, resistance appears around $66,000, with the June and July barrier near $67,000 representing the top of the range.
For Bitcoin bulls, the immediate hope is a return to the $66,000 to $67,000 area. The issue is that the relative strength index has slipped to around 42, below the neutral 50 level. That suggests further weakness towards $61,000 may be on offer before the chart can regain its footing.
The worst-case technical projection is a move towards the March support line around $55,000. It is not the scenario bulls will want to dwell on, but it remains the risk if the current range fails.
Ethereum: Constructive Above the Rising 50-Day Average
Ethereum has looked better than Bitcoin over recent weeks, largely because it has been consolidating above a rising 50-day moving average near $1,830.
If Ethereum can get moving again, the 200-day moving average at roughly $2,018 is the obvious target for the end of the month. At present, however, the market looks suspiciously inactive and the RSI is sitting at a neutral 50.
That leaves Ethereum in a technically constructive position, but without much immediate momentum to hang a hat on.
Gold and WTI Crude Oil: Support Levels Remain Crucial
Gold: Consolidation After a Sharp Spike
Gold is attempting to consolidate after its latest sharp move from the 4,000 area. The market briefly slipped below 4,000, but the key aim is to remain above the recent support zone around 4,300.
As long as that support remains intact, the 200-day moving average near 4,453 is the target for the end of the month.
The other encouraging sign is the 50-day moving average, which may finally be beginning to turn higher. A rising 50-day average would give the chart a stronger base and could help push gold higher from here.
WTI Crude Oil: A Potential Move Towards the Gap Top
Crude oil has been influenced by the lack of clear news around Iran. The situation remains uncertain, although the increasingly belligerent rhetoric around the Strait of Hormuz could provide a reason for oil to firm during the coming week.
Technically, the important level is the 50-day moving average at around $78.76. While WTI remains above it, the target is the top of last month’s gap near $87.
The RSI has bounced from the neutral 50 area, which is a positive technical signal. The price action may still look sluggish, but the chart is positioned for a move higher if the market can find a catalyst.
SpaceX: Resistance at the 50-Day Moving Average
SpaceX has become an interesting alternative while the crypto market is stuck in neutral. The shares ended the week nudging the 50-day moving average at 143.91, which is currently acting as resistance.
An end-of-day close above that level would put the 200-day moving average above 156 into focus. Below the market, recent support sits around 130.
There was also news that Elon Musk holds a sizeable 48% stake in SpaceX, although the market reaction was fairly muted. From a chart perspective, the RSI around 54 is in a healthy position for a fresh move higher.
- Support: 130
- Near-term resistance: 143 to 144
- Upside target after a breakout: 156 and above
UK Small-Cap Shares Showing Technical Promise
- Bravura: A Channel Break Could Target 220p: Bravura reached the top of its rising channel around 186p to 187p. The next requirement is an end-of-day close above the resistance line at 188p. If that breakout is confirmed, the chart could target as much as 220p by the end of next month. The stock has been gapping higher and looks technically strong.
- Bezant: Looking for 2p After a Resistance Break: Bezant has broken recent resistance around 0.14p. The next objective is the top of the rising channel from January, near 0.20p. The hope is that it follows the other Colin Bird-related shares higher. The chart now needs to build on the breakout and stay above its former resistance zone.
- Harena: Bull Flag Setup With a Golden Cross Developing: Harena managed to secure $5 million from American investors earlier in the week, which is no bad trick. The shares have formed a bull flag above recent resistance around 2.75p. A move higher would point towards old March resistance near 3.3p by the end of the month. The 50-day and 200-day moving averages are also moving towards a golden cross, adding weight to the bullish setup.
- London BTC: Rebounding Above the 50-Day Line: London BTC ended the week with a useful bounce back above its 50-day moving average at 1.55p. The immediate job is for that average to start rising. While the shares hold above the 50-day line, the target is the former post-February resistance near 2.5p by the end of next month. The RSI has also rebounded above the 50 area, while the company has news flow around antimony and gold to support interest in the story.
- Microlise: Strong Daily Candles Point Towards 57p: Microlise is an unlikely but interesting inclusion. The shares have made further progress above a rising 50-day moving average, with strong daily candles suggesting buyers are taking control. Three of the last four sessions opened near their lows and closed near their highs, which is usually a constructive sign. While the price remains above 45p, the target is the top of the gap near 57p by the end of the month.
- Mila: Gap-Up Follow-Through and a 2p Target: Mila has gapped up and followed through, with strong intraday price action and a rising 50-day moving average. Once again, the tendency to open low and close high suggests accumulation. While the shares remain above the former resistance level around 1.2p, the target is 2p by the end of next month.
- Mulberry: A Remarkably Strong Vertical Move: Mulberry has produced a striking vertical rise, with repeated sessions and weeks showing persistent buying pressure. The pattern has been notably one-way, with the shares repeatedly opening near their lows and closing near their highs. The call is quite straightforward. While Mulberry holds above £2, which has acted as short-term support, the target is £3.
- Novacyt: Bull Flag Above 42p: Novacyt remains more difficult to handle because the chart has been so rocky. Even so, there is a bull flag setup above old resistance at 42p. The initial target is 52p. In the best-case scenario, the shares could move towards the May resistance area around 61p next month.
- Phoenix Copper: Bull Flag Breakout Following Institutional Interest: Phoenix Copper received a lift from the appearance of RAB Capital on the register, which helped explain the rise in the shares. Friday brought a bull flag breakout. While the stock stays above recent support near 0.57p, the minimum target is the 50-day moving average around 0.73p. The more ambitious target is the top of the gap at 1.1p by the end of next month.
- Rightmove: A Saucer-Shaped Reversal: Rightmove is looking decent following a saucer-shaped reversal. The shares have broken through the 200-day moving average and cleared recent resistance around 488p. Above that level, the next target is the top of the rising channel around 566p by the end of next month. The RSI also has a positive rising trend line, which supports the improving technical picture.
- Sealand: Progressing Towards 66p: Sealand continues to make progress. The shares face resistance around 0.48p, which is the second target on the chart. A sustained break through 0.48p would point towards 0.66p by the end of next month, or possibly earlier. Ideally, the shares remain above recent intraday support around 0.43p.
- Strategic Minerals: A Breakout Backed by Drilling News: Strategic Minerals delivered a significant announcement during the week and has broken recent resistance near 4.65p. The initial target is 5.9p, with a best-case move towards the previous high around 7.75p by the end of next month. The company is preparing an update on the Redmoor programme, described as Cornwall’s largest diamond drilling programme of the century, which gives the chart an obvious fundamental talking point.
- Thruvision: Holding a Gap After a £3 Million Contract: Thruvision has broken above recent resistance at 1.1p, returned to test that level as support, and then moved higher again. That is exactly the kind of price behaviour technicians like to see. While the shares remain above 1.1p, the target is the top of the gap near 1.75p, potentially by the end of the month if conditions remain favourable. The chart is supported by both rising 50-day and 200-day moving averages. The shares also gapped up, held the gap and continued higher, with the move coming after a £3 million contract announcement.
What Matters Most From Here
The broad market picture is not one of outright panic. The FTSE 100 is trying to hold 10,750, the DAX remains close to the top of its long-running channel, and the Dow is still supported by its latest gap.
Bitcoin and Ethereum need more energy before they become compelling again. Gold needs to hold its recent support area, while oil has the technical ingredients for a move towards $87 if it stays above its 50-day average.
Among the individual shares, the most attractive charts are those showing clear breakouts, rising moving averages, gap support and strong daily closes. Bravura, Harena, Microlise, Mila, Mulberry, Phoenix Copper, Rightmove, Strategic Minerals and Thruvision all fit that general technical theme to varying degrees.
Markets may be quiet, but quiet periods often create the consolidation patterns that precede the next substantial move.
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 to 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.
