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, Audioboom, Andrada, Halo, London BTC, Marechale, Metals One, Novacyt, Smith & Nephew, Scancell, Tap Global, Tomco, Thor Explorations, TPX, Wishbone.
The technical picture improved markedly across equities, crypto and precious metals this week. Several major markets have bounced from their rising 50-day moving averages, while Bitcoin, Ethereum and gold have delivered the sort of upside follow-through that often appears after a period of consolidation.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major Indices: FTSE 100, DAX and Dow Jones Recover
FTSE 100: Back Towards Former Support at 10,820
The FTSE 100 bounced almost exactly from the floor of its rising trend channel on Thursday. That channel has been in place since March, so it was one of the favoured areas for a recovery.
The immediate test is the old support zone at 10,820, which now acts as resistance. A sustained move above that area would point towards 11,000, potentially by the end of next month or sooner.
On the downside, the preferred outcome is for the index to remain above its rising 50-day moving average, currently near 10,651. The chart is starting to resemble July, when a series of support points above the 50-day line ultimately produced fresh highs, albeit temporarily.
For broader reference on the index and its constituents, see the FTSE 100 information page from the London Stock Exchange.
DAX: RSI Momentum Turns Constructive
The DAX briefly slipped roughly 100 points below the 26,000 area, but has since recovered. The initial upside target is the top of the previous gap near 26,300.
Beyond that, the more ambitious target is the projected February resistance line around 27,300 by the end of next month. If the market retraces first, the favoured support area is near the 50-day moving average at 25,400.
The positive technical development is the RSI rebound above neutral 50. With the RSI around 58, momentum is back on the constructive side.
Dow Jones: A Better 50-Day Moving Average Bounce
The Dow has also bounced above its 50-day moving average, and this looks more convincing than the recovery seen last month. The near-term resistance is around 53,700.
A break through that level would open the way to the top of the rising trend channel near 54,700. The old November resistance zone points to around 55,000 by the end of next month, with a best-case target near 56,000.
The key downside level is the floor of the rising channel from April, currently around 52,100. Holding above that area would preserve the bullish structure.
Cryptocurrency Charts: Bitcoin and Ethereum Lead the Charge
Bitcoin: The 200-Day Break Changes the Picture
Bitcoin has been one of the stars of the week. Although it was softer on the day, the market remains constructive while above the Thursday resistance area at 73,500.
The main target is the old November support and resistance area around 83,000. Even if that level later proves difficult, it is the obvious magnet while the current breakout remains intact.
The more important development was Bitcoin’s gap above the 200-day moving average after it cleared the declining trend line around 65,000. That line had capped the market since October, so breaking it was a significant improvement in the technical backdrop.
Consolidation has also taken place around a rising 50-day moving average, particularly over the past couple of weeks. That is typically what one wants to see after a breakout: price pauses, holds above support and then has the chance to continue higher.
For market data and background on the asset, CoinDesk’s Bitcoin price page offers a useful external reference.
Ethereum: The Earlier Signal From the 50-Day Line
Ethereum provided an earlier indication that patience in crypto was likely to pay off. It formed multiple support points above a rising 50-day moving average, a pattern that often precedes a substantial move higher.
That move has now arrived. The main question is how deep any retracement will be, with 2,300 to 2,320 the likely support zone. This area previously acted as resistance on the way down, making it an obvious level to monitor on a pullback.
On the upside, Ethereum could reach the top of its rising trend channel from February near 2,800. That channel remains the dominant guide to the price action.
The RSI also gave a useful advance warning. Since the start of last month, it has repeatedly found support around the neutral 50 level. The particularly sharp RSI rebound in the middle of the month helped forecast the subsequent upside move.
Gold and WTI Crude Oil: Commodities Regain Momentum
Gold: Consolidation Above the 50-Day Line Delivered
Gold enjoyed a glorious week. The market had already broken through its 50-day moving average and the 4,170 level during the first week of the month. It then consolidated above a rising 50-day average, which is exactly the kind of behaviour that can deliver another upside leg.
As long as gold remains above 4,480, the initial August resistance area, the chart points towards 4,800. That was a resistance area in May and remains the obvious target, even if the market ultimately pulls back after reaching it.
WTI Crude Oil: $88 Is the Immediate Obstacle
WTI crude oil was steady rather than spectacular. The main stumbling block is the resistance line from the beginning of the year, which comes in around $88.
A break above $88 would put $93, the mid-July resistance level, in focus. Above that, the market could head back towards $100 by the end of next month.
Such a move would likely require a material escalation in the Iraq conflict. On the downside, recent swing lows around $83 to $84 are the key support area. Ideally, crude holds above $85, which was early-August resistance.
SpaceX: A Defined Trading Range With RSI Support
SpaceX has broadly done what was required. The 50-day moving average near 141.82 remains the resistance level, while recent support lies around 130.
The RSI has rebounded from the neutral 50 area, which improves the setup. While the shares remain above 130, the minimum target is a return to the 50-day line around 141.82.
Small-Cap Shares to Monitor
- Audioboom: Breakout Above 460p: Audioboom has broken recent resistance around 460p and now has a rising 50-day moving average beneath the price. That points to the top of the rising channel from June around 550p. The best-case target is the 200-day moving average near 562p by the end of next month, or potentially earlier. A return to the year high above 800p remains a much longer journey, especially for shareholders sitting well below their entry price.
- Andrada Mining: 6p Is Now in Sight: Andrada has taken longer than expected to get moving, but the chart now looks much more encouraging. Above the initial 2026 resistance at 4.8p, the minimum target is 6p. What had been a target for the end of next month now looks achievable by the end of this month. If 6p is reached promptly, the next major resistance is above 8p. Subject to fundraising considerations, a move through 6p would support a longer-term target around 6.8p by the end of next month.
- Halo Minerals: Strong Candles Above the 50-Day Average: Halo Minerals finished the week strongly, with two notably bullish candles. Thursday and Friday both opened near their lows and closed near their highs, with the price finishing well above the rising 50-day moving average. Above the 50-day line at 9.8p, the first target is the top of the rising channel around 11p to 12p. The more ambitious target is 14p by the end of next month.
- London BTC: Breakout From a Falling Channel: London BTC has broken out of its falling trend channel. The setup resembles Halo Minerals, with a rising 50-day average and strong sessions that opened near the lows and closed near the highs. The main resistance is 2.5p, which could be tested in the coming days or before month-end. Above 2.5p, there is relatively little obvious daily-chart resistance before the uptrend line near 4.25p.
- Marechale Capital: Wait for a Close Above 5.5p: Marechale Capital has a rising trend channel based around 4.75p, with the first important upside objective around 6.5p. Ideally, the shares break through 6.5p before the end of this month. That would set up the possibility of a larger rally towards 11p during September or October. There are meaningful fundamental developments in the background, but technically the cautious approach is to wait for an end-of-day close above the 50-day moving average near 5.5p.
- Metals One: A 50-Day Moving Average Trigger: Metals One has spent a long time out of favour, but the improving metals backdrop may be helping. The missing ingredient is an end-of-day close above the rising 50-day moving average at 1.33p. If that trigger arrives, the chart points to 1.65p over the next two to four weeks.
- Novacyt: An Early-Bird Signal After a Volatile Period: Novacyt has been a difficult and highly volatile chart, particularly around May and in the period since. The current setup looks more orderly. The shares broke resistance around 40p, returned to test it as support and are now bouncing again. Both the 50-day and 200-day moving averages are rising, creating an early-bird buying signal around current levels. A more cautious approach would be to wait for a break above 48p. That would put 60p in focus by the end of next month. The RSI rebound through 50 is another positive ingredient.
- Smith & Nephew: A Potential Bottom-Fishing Setup: Smith & Nephew offers a potential bottom-fishing scenario, provided the falling trend channel remains valid. The low may have been set at £10.46, with the shares then closing back above the previous low around £10.59. Holding above 10.59 is essential. If that level remains intact and the channel floor holds, the chart points towards £11.30 by the end of next month.
- Scancell: Triangle Break Needed Above 9.75p: Scancell is developing a converging triangle near the lows. The first task is a break above 9.75p. That would open a move towards 10.5p and potentially signal a more durable recovery. There is also an RSI uptrend line, which can be interpreted as evidence of accumulation around the lows. The line in the sand is the recent support zone near 9p. A return below that area would undermine the improving setup.
- Tap Global: Still at the Bottom of the Range: Tap Global has yet to reflect the strength seen in cryptocurrencies, despite company news and broader excitement during the week. The market may simply be waiting for evidence of sustained profitability. The shares remain near the lower end of their range. There is support at 1.1p, and while that holds, the best-case target is 1.7p by the end of next month. The caution is obvious from the chart. Previous spikes towards that upper level have been sold within a day or two, suggesting that the supposedly phantom seller has been rather less phantom-like than hoped.
- TomCo Energy: Breakout Above 0.029: TomCo has disappointed repeatedly, but it has now broken recent resistance around 0.029. Above that level, the target is the top of the range and the 200-day moving average near 0.041. The target could be reached by the end of next month or earlier. The historic problem is that the shares often produce one or two strong sessions before falling away again, so follow-through matters more than a single good day.
- Thor Explorations: Gold Strength Supports the Breakout: Thor Explorations has broken recent resistance, helped by the sharp rise in gold. The shares gapped higher on Friday, with the gap floor around 67p. While the price remains above 67p, the chart targets the April resistance zone near 82p, ideally by the end of next month and perhaps sooner. The 50-day and 200-day moving averages are both rising sharply, which adds weight to the recovery case.
- TPX: A Steep Rising Channel Remains Intact: TPX has a particularly steep rising trend channel. Support continues to emerge above the rising 50-day moving average, suggesting the potential for an acceleration higher. The upside target is 97p by the end of next month. RSI rebounds around the neutral 50 level are also supporting the bullish technical case.
- Wishbone Gold: Needs to Reclaim the 50-Day Line: Wishbone has been disappointing. The shares initially broke out of a triangle pattern but then moved lower, which was not the expected follow-through. The immediate requirement is an end-of-day close above the 50-day moving average, just below 23p. The RSI also needs to reclaim 50, a level it has not convincingly held above since March. No fresh lows are wanted while the chart tries to stabilise. A close above the 50-day line would provide the first credible technical trigger for further gains.
The Common Technical Message
The strongest charts this week share a familiar combination: a rising 50-day moving average, price consolidating above that average, and an RSI that finds support around 50 before turning higher.
Bitcoin, Ethereum, gold, Halo Minerals, Novacyt and TPX all show parts of that framework. The weaker charts require a more specific trigger, usually a decisive close above a moving average or a clearly defined resistance level.
Targets are useful because they give a structure to the trade, but support levels matter just as much. A chart is only as good as its ability to hold the levels that created the bullish setup in the first place.
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.
