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, Audioboom, Catenai, Critical Mineral, Gem Diamonds, Hamak, Harena, KR1, Mosman, Ondine, Oxford Biomedica, WeCap.
In this weekend edition I run through the charts I’ve been watching: the major indices, crypto, gold and a batch of smaller bulletin-board stocks. Below you’ll find the key levels, short-term risks and my upside targets (many timed for the end of next month). I’ll keep the commentary chart-driven and to the point.
Market snapshot
FTSE (Footsie)
The FTSE is sitting inside a rising wedge — a negative setup. The top of the wedge is heading for 9,330, which is my best-case target by the end of next month. On Friday we found support at the wedge uptrend line (low around 9,130) and the month low so far is 9,027.
Bearish divergence has shown up on the RSI (higher highs in price, falling RSI). Unless we get an end-of-day close back above 9,200 I’m wary of a test of the 9,000 area over the next week or two — the Ukraine situation on Monday could be a catalyst.
DAX
We cleared July resistance at 24,300 late in the week and have had an RSI 50 rebound. Best case: the top of the rising trend channel around 25,400 by the end of next month. Given the recent soft price action, we may first test the 50-day line near 24,000; worst case brings us back to the 23,000 area (post‑June support).
Dow
The Dow is finding it difficult to push to new record territory above 45,000. If it can hold and extend above 45,000 the top of the May rising trend channel (about 47,500) is the prize by the end of next month. Friday’s action makes a one‑ or two‑attempt test of the 50‑day line around 43,900 plausible.
Cryptocurrency
Bitcoin
Bitcoin briefly hit a new record during the week (around $124,500) but has slipped back into the prior range and towards the floor of the March rising trend channel. Current range: roughly $115–120k, RSI 52 and trying to turn up.
- Keep above the channel floor/50‑day ($115k) and a move to $132–133k by the end of next month is on the table.
- An end‑of‑day close through 120k would be a useful trigger to get momentum back.
Ethereum
Ethereum had a bullish week in terms of headlines (JP Morgan, comments from Joseph Lubin). On the chart we hit the March channel (initial $3,600) and beat the second target ($4,550) before slipping back.
- Key short-term level: stay above the initial August resistance of $4,330.
- Best-case technical target: up to $5,500 (upper parallel) by the end of next month — but that relies on holding above $4,000 over the next week or two.
Gold
Gold is comparatively dull right now — bumping along the bottom of the rising trend channel from April. Price is around the floor ($3,330) and the RSI has failed at neutral (50).
- Downside risk: $3,270 and possibly the June intraday low near $3,223.
- Recovery target: the sticky April resistance at $3,430 — but that looks hard to clear in the near term.
Selected stocks — bulletin board and small caps
Below are the individual names I covered with chart-based levels, support, resistance and targets. Timeframes referenced are short term (end of this month) to moderate term (end of next month).
Audioboom
Nice weekly close through the old resistance (around the 412p area). Little on the chart between here and 450p; the top of the rising trend channel (from November) sits around 500p — my target by the end of next month. RSI is nicely above neutral and both the 50‑ and 200‑day lines are rising; a golden cross could be delivered by month end. Upside is valid while we stay above the 390p area; consider the rising 50‑day (351p) as a longer‑term trading stop for holders.
Catenai
Strong end‑of‑week action — shares bounced from just below a rising 200‑day moving average. RSI is back above neutral 50 and Friday opened at the low and closed at the high (a constructive day). Initial resistance sits near 0.30p; the longer the share price stays above the 200‑day (0.25p), the better the chance of a move into the low 40s by the end of next month.
Critical Mineral Resources
Key reversal to the upside on Friday. We’ve beaten the third target by some distance at 2.8p. Final resistance on the way up sits around 3.8p — I’m looking at that by the end of this month at the current pace. Key support: stay above the 3p zone (which held on Friday).
Gem Diamonds
Interesting non‑punting setup — a broadening triangle base after last month’s flush. Support is holding at the 50‑day line (6.5p) and there’s what looks like a bull flag resting on that line. Two RSI rebounds above neutral 50 give a leading indicator to the upside.
Target: up to 10p (not necessarily by the end of this month, but shortly thereafter) provided we remain above the 50‑day on an end‑of‑day close basis.
Hamak Gold
Shares rose on Friday with no fresh news. We bounced towards the 4p level, which is also the floor of the rising trend channel since April. Target: back to the recent resistance near 6p. This is the third RSI 50 rebound since June — the previous two were successful, so third time could be lucky.
Harena
We had an unfilled gap to the upside and a break through 1.6p on Friday. There are multiple support points above a rising 50‑day line and the 200‑day moving average — the 2.2–2.0p area looks like a done deal in the near term. After that, not much on the chart until 3p, which is a reasonable target by the end of next month. Avoid an end‑of‑day close beneath 1.5p.
KR1
After some digging this looks like an Ethereum play. The shares have broken recent resistance at 43p. Look for a move to 70p by the end of next month — that’s the top of the falling trend channel in place since September last year. RSI rebounded off the April uptrend and the 50‑day is rising, so the setup looks healthy.
Mosman Oil and Gas
Quiet stock but constructive: we closed on recent resistance at 0.031. There have been at least two RSI rebounds above neutral 50. A target is the June peak at 0.041 by the end of this month if momentum continues.
Ondine Biomedical
Shares have comprehensively broken the top of the rising trend channel — the initial target was 15p. Beyond that the upper parallel and a summer 2023 resistance projection put a target at 22p by the end of this month.
Oxford Biomedica
Bigger than my usual coverage (market cap £500m) but a neat turnaround: a break of the initial August resistance (470p) is in place. Looking for 650p as soon as the end of next month. RSI has been rebounding above neutral 50 since early July.
WeCap
Gap through resistance — shares are on the front foot and a news event could be forthcoming. Above the 1.8p level, the projection puts the upper parallel around 2.8–2.88p by the end of next month (possibly sooner).
Key watch points — quick summary
- FTSE: rising wedge — need a close back above 9,200 to avoid a test of 9,000.
- Bitcoin: hold the 115k/50‑day to keep the 132–133k scenario alive.
- Ethereum: keep above 4,330 and preferably 4,000 short‑term to target 5,500.
- Gold: sitting on the channel floor — watch 3,270 and 3,223 on the downside, 3,430 on the upside.
- Small caps: several actionable chart setups — watch the listed support lines and respect stop levels (many referenced above).
That’s it for today — more updates tomorrow.
““If we can stay above the floor of the channel and the 50‑day line, then targets become realistic — but a few end‑of‑day closes the right side of key levels will be needed.””
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.
