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, Aptamer, Blencowe, Cloudbreak, Chill, ECR, Empire, Fiinu, GCM, Hemogenyx, Rockfire, Rome Resources, Wishbone.
This post pulls together the key levels, momentum signals and targets I talked through — covering the FTSE 100, DAX, Dow, Bitcoin, Ethereum, gold and a batch of small-cap stocks that have been lighting up my watchlist.
What I’m watching this week
Overall theme: a few markets are flirting with key support lines and momentum (RSI) levels; others have broken resistance and are trying to build on that. Below I walk through the major indices, cryptos and gold first, then run through the individual stocks I highlighted — targets, risk levels and what would invalidate the bullish case.
Indices
FTSE 100
- Near the uptrend line from June — suggested support was 9,180 (Friday low 9,179.18).
- RSI support around the 56 level has been broken after multiple tests — that raises the risk of a move down toward the 50-day line (9,030).
- Key bullish level: a return above recent resistance (9,220) would delay or negate a drop toward the low 9,000s.
DAX
- Trading either side of the 50-day line (around 24,000) and finished the week below it.
- RSI is well below neutral 50 — not ideal.
- Watch August support (23,400). A break back above 24,200 (recent resistance) would put the DAX back on a path toward 25,700 by the end of September, provided it avoids testing August lows.
Dow Jones
- Nice development: the Dow has finally cleared the 45,000 record highs (after several attempts).
- Now in a consolidation phase — still looking constructive.
- As long as we stay above 45,000, the top of the rising channel (near 47,500) is a reasonable near-term target. A break back below the 50-day (44,400) would undermine that thesis.
Cryptocurrencies
Bitcoin
- The rising trend channel floor I drew came in around the 107,000 level; we dipped slightly below it but that line has mattered.
- Nearest resistance to clear is roughly 111,000 — a break above that gives a chance to re-test the 50-day (116,000).
- Short-term target remains north of 130,000 by late next month / early October if the channel holds.
- RSI is struggling — I don’t want to see it drop much below 38. The 200-day (100,000) would be the next major downside test; we haven’t been below that since April.
Ethereum
- The steep support line I had drawn has been broken, but not decisively; RSI has bounced back above neutral 50 — that’s constructive.
- If we stay on the right side of roughly 4,300, the path is open to 5,000 and potentially 5,500 by the end of next month.
- Ethereum is looking like the outperformer versus Bitcoin at the moment, thanks to repeated RSI 50+ rebounds this month.
Gold
- Gold briefly cleared the 3,410 level — that April resistance line had been a logjam for months.
- Breaking that was encouraging and opens the possibility of a sharp rebound; a reasonable near-term target would be around 3,500 (with a more ambitious 3,800 scenario by the end of September if momentum continues).
- Downside support to watch is the floor of the channel near 3,350, which is also close to the 50-day moving average.
Small-cap stocks — bulletin board highlights
Here are the individual names I covered, with the chart levels and targets I’m watching. These are trading-level notes rather than company briefs, so price action and technical invalidation points matter most.
Aptamer Group
- Recent unfilled gaps have been filled on the upside — previous resistance was 0.68p and 0.9p.
- While above 0.9p the chart suggests a path to 1.40p by the end of September.
Blencowe Resources
- Already retested the first target around 4.75p.
- Above that level I’m looking toward 6p+ by the end of September; the 50- and 200-day lines are now rising (200-day started to rise late last week), which is encouraging.
Cloudbreak
- Flagged earlier and now approaching the third target (roughly in the high single-digit pence zone by my drawing).
- Earlier small targets were cleared and the chart currently suggests potential to move materially higher if momentum continues — I pencilled in up to 1.75p as an intermediate reference point into next month.
Chill Brands
- Initial buy signal was an end-of-day close back above the gap floor (around 0.5p).
- Stock has taken out the 200-day line at 2.1p. Above recent broken resistance (1.7p) I see a path up to roughly 3.5p by the end of next month — a decent risk/reward while we stay above 1.7p.
ECR Minerals
- Rallied through a falling 200-day at 0.25p and gapped through resistance.
- The target I’m watching is the top of a broadening triangle, near the mid-30s (around 0.36p), and the 50-day is rising — the chart looks impressive for now.
- The company’s recent adoption of a digital asset treasury strategy is supportive of interest in the shares.
Empire Metals
- We hit the resistance projection around 60p during the week — great to see that play out.
- While the share remains above the earlier target (45p) I’m still looking for 60p and beyond.
Fiinu
- 100% approval for the RTO was a clean outcome — you don’t see that every day.
- Shares rallied after the RTO cleared; while above the old resistance (17.5p) I’m targeting 24p during September.
GCM Resources
- After a dip below neckline resistance (5.15p) we’ve bounced and cleared a rising 50-day line.
- RSI has rebounded above neutral 50; staying on the right side of 6p keeps the 10p target in play, possibly by the end of September.
Hemogenyx
- I charted this twice during the week. Earlier, when the shares were around 22–23p the target was 27p and the best-case was 30p — which the stock tested on Wednesday.
- By Friday, after the move to 40p, the best-case target I had was 42p and the shares overshot again to the mid-60s pence on a very strong day.
- Next level up is the May 2024 resistance line — around 9p on my drawing — and the short-term technical invalidation sits near 4.8p (December resistance turned support in my sheet). Important to remember market cap is only about £25m, and these smaller-caps often fundraise on spikes.
Rockfire
- Earlier target was 0.22p when the shares were trading in the teens. I’d like to see the stock stay on the right side of 0.16p and then a move to 0.22p is doable in the next week or two.
Rome Resources
- I tweeted the chart on Friday when the shares were 0.34p; they finished at 0.39.5p.
- My channel projection suggests room to the 0.45–0.48p zone and a retest of the all-time high (0.48p) is in play while the stock stays above 0.35p.
Wishbone
- One of the stronger setups recently. We’ve had multiple targets from 0.29p upwards; the stock is now above an earlier target (1.45p) and I’m looking for up to 2.10 during September.
Final thoughts
Summary: a mixed picture. The Dow looks constructive after clearing record highs; the FTSE and DAX are nearer meaningful support and require careful monitoring of RSI and the 50-day lines. Bitcoin and Ethereum have diverged a little — Ethereum currently looks stronger on the RSI rebounds — while gold’s breakout above 3,410 has opened the door for a sharper rebound. On the small-cap front, a number of charts are now showing clear upside targets, but keep a close eye on moving averages, recent broken resistance levels and the possibility of fundraisings on spikes.
I’ll be watching these levels closely and will post updates during the week. If there’s a specific chart you’d like me to dive into next time, let me know and I’ll prioritise it.
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.
