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, Anglesey, Antofagasta, BSF Enterprise, Beowulf, Diageo, Greatland, GlobalData, Georgina, Lansdowne, Mendell, Phoenix Copper, Rank, Synthomer, Renalytix.
The market is still behaving in rather punchy fashion. Across the major equity indices, cryptocurrencies, commodities and selected UK shares, the technical picture is generally constructive. The common theme is support holding where it ought to hold, RSI rebounds gaining traction, and several markets sitting just beneath potentially significant breakout levels.
That does not rule out short-term pullbacks. In fact, a few of the charts may need one final dip before moving higher. But provided key moving averages and support areas survive on a closing basis, the bias remains to the upside
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
FTSE 100: Support at 10,830 Sets Up an Upside Break
The FTSE 100 has built what looks like a substantial wall of support around 10,830. Given that base, it is slightly surprising that the breakout has not already arrived.
The immediate obstacle is the top of the rising intermediate channel from March, near 11,000. A clear break through that area would point towards 11,500, potentially by the end of next month and perhaps sooner.
On the downside, 10,760 is the key fallback level. It would be difficult to make a convincing bearish case below that while the market retains such solid horizontal support, especially after the prior defence of the rising 50-day moving average.
Multiple rebounds around RSI 50, followed by moves above that threshold late last week, reinforce the bullish set-up. For background on how this momentum measure is typically interpreted, see Investopedia’s guide to the Relative Strength Index.
DAX: March Channel Break Points Towards 27,300
The DAX appears slightly ahead of the FTSE 100. It has already broken above the equivalent March channel, with 26,300 now the important level to hold above.
Provided the index remains on the right side of 26,000, which has served as intraday support, the next attraction is the upper parallel of the rising channel from March. That gives a target near 27,300.
The preferred timing would be by the end of this month, although the end of next month remains the more measured expectation.
Dow: 55,000 Still in Play, With 56,000 the Bigger Prize
The Dow has been pricing in positive news from the Middle East, although that assumption may yet prove premature. Technically, it has nevertheless managed to reach the 54,000 area and briefly test the best-case target near 55,000.
That remains the near-term target. For those looking for greater glory in US equities, the next rising trend line points towards 56,000, potentially by the end of next month. Given current market behaviour, it would be no great surprise if that happened sooner.
If there is a pullback, the floor of the recent gap at 53,200 is the favoured support zone. That is the level where missed-entry buyers may be inclined to leave limit orders, assuming the broader recovery remains intact.
Crypto Charts: Bitcoin and Ethereum Consolidate Above Key Averages
Bitcoin needs to hold its rising 50-day average
Bitcoin has dipped below the 50-day moving average around 63,300, but the broader consolidation attempt remains positive as long as that now-rising average is respected.
The initial objective is 67,000, the resistance zone that held the market back during June and July. A break beyond there opens the door to around 70,250, near the 200-day moving average, as an end-of-August target.
The key conditions are straightforward:
- Hold above the rising 50-day moving average.
- Keep RSI above the neutral 50 level.
- Clear 67,000 to confirm a stronger recovery phase.
Ethereum: A slow but potentially meaningful trend change
Ethereum is also consolidating above a rising 50-day moving average, currently around 1,798. Above that level, the chart points towards the 200-day moving average in the 2,055 to 2,070 area.
That would be a significant technical development, as Ethereum has not traded above its 200-day average since November. The sluggish nature of the current move is understandable. The market seems to be waiting for the 50-day average to rise further and provide a more straightforward route through the 2,000 level.
Should a pullback occur, the 50-day average around 1,798 is the preferred destination. The worst near-term outcome would be a retreat towards 1,750, where early support emerged last month.
Gold: Consolidation Breakout Targets the 200-Day Average
Gold continues to attract attention, and the chart explains why. The market has broken out of a small consolidation above the rising 50-day moving average and found support above former resistance near 4,200.
The next objective is the 200-day moving average at 4,493. That could be reached by the end of the month, or even earlier if the 50-day average starts rising decisively.
A rising 50-day line would add considerable weight to the bullish case. Another encouraging feature is the repeatedly tested rising trend line in the RSI window. When an RSI uptrend is being respected in this manner, it often indicates that a market is preparing for a stronger advance.
WTI Crude Oil: Bear Trap Rebound, but RSI Still Needs Work
Crude oil remains the market most likely to keep everyone guessing. The chart has produced a bear-trap rebound from below a rising 200-day moving average, which is usually an encouraging signal.
For now, oil is caught between the two major moving averages:
- 76.51 at the 200-day moving average.
- 79.85 at the 50-day moving average.
An end-of-day close above the 50-day average would favour a recovery towards $85, with $87 as the best-case scenario over the coming days.
The caveat is momentum. RSI remains below neutral at 46, which slightly favours another support test before the real upside move begins. A break below $74 could mean one final dip towards $70 before the chart rehabilitates itself.
Small-Cap and UK Stock Chart Opportunities
- Anglesey Mining: Golden cross potential after a 50% week: Anglesey Mining had a strong week, rising roughly 50% from 4p to 6p and trading even higher during Thursday’s session. The Paris Mountain investment case released on Monday, alongside the new chief executive, appears to have been well received. As long as the shares remain above June resistance around 5.5p, the chart points towards 9.4p by the end of next month. Both the 50-day and 200-day moving averages are rising, and the shares may be only a week or two away from a golden cross. The run-up into a golden cross, where the 50-day average crosses above the 200-day average, can often be the strongest stage of the cycle.
- Antofagasta: Results could propel the shares towards 4,180p: Antofagasta has rallied ahead of its forthcoming results, with the main technical target set by the resistance line from June near 4,180p. The bullish case remains valid while the shares hold above the 50-day moving average at 3,847p. If there is an unpleasant surprise, the 200-day moving average at 3,545p should provide the more substantial support. Both that level and the 50-day line are potential areas for limit orders. Given the sharp strength in commodity prices, the hope is for a constructive update.
- BSF Enterprise: U-shaped recovery could fill the gap to 2p: BSF has been under persistent pressure from bearish attention, but the latest chart action is more encouraging. An RSI rebound and a U-shaped reversal suggest the shares could break above the 50-day moving average at 1.22p. That would create scope for a move to fill the gap towards 2p, potentially by the end of the month. The critical support remains around 0.75p. Ideally, there is no breakdown beneath that area.
- Beowulf Mining: Above the 200-day line, 14p becomes realistic: Beowulf Mining has broken through its 200-day moving average around 8.1p. Above that level, the chart targets the top of a rising channel extending back to this time last year, near 14p. This could happen as early as the end of the month. The set-up is helped by a strongly rising 50-day moving average, a clean break through the 200-day line and an extended RSI 50 rebound, all of which suggest potential for a sizeable upside move.
- Diageo: £18.30 cleared, with £21.00 now the larger target: Diageo was highlighted ahead of Thursday’s results with an initial target near £17.30. That level was cleared, and the shares then came within touching distance of the second target at £18.30, reaching £18.27 on Friday. Above £18.30, the next target is as high as £21.00, possibly by the end of next month. The effort by Drastic Dave to boost Guinness, the jewel in the crown, looks to be supporting the renewed optimism in the shares.
- Greatland: Gold recovery supports a return to 800p plus: Greatland is benefiting from the recovery in gold. The shares have gapped through both the 50-day and 200-day moving averages, with the 50-day average at 614p. Holding above that level on an end-of-day closing basis puts the prior highs back in play, with a target of 800p plus by the end of next month.
- GlobalData: Inverted head-and-shoulders break targets 95p: GlobalData has broken neckline resistance around 85p. The formation from late June resembles an inverted head-and-shoulders pattern, and the breakout is backed by an RSI 50 rebound. The shares closed well above the 50-day moving average on Friday, with that average near 83.75p. Above that level, the chart points towards 95p by the end of the month.
- Georgina Energy: Above 14p, the channel target is 21p: Georgina Energy has shrugged off bearish attention impressively. The placing at 9p has been absorbed quickly, with the shares trading comfortably above that level and the expected churn apparently removed. The longer the shares remain above 14p, the greater the chance of a move towards 21p, the upper parallel of the rising trend channel from February. It is a punchy target, but it is also a punchy chart, especially following the successful placing.
- Lansdowne: A long-awaited 50-day moving average break: Lansdowne has moved above its 50-day moving average for the first time in what feels like years. The shares gapped through the line at 0.08p on Thursday and held above it. With no obvious nearby historical resistance, the preferred destination is the top of a potential falling trend channel around 0.13p. While the shares remain above 0.08p, that target is favoured by the end of the month.
- Mendell Helium: Bull flag set-up above rising averages: Mendell Helium has formed a bull flag above rising 50-day and 200-day moving averages. That type of consolidation can lead to a useful continuation move. Provided the shares remain above the moving-average support zone around 4.3p, the chart suggests a move towards 6.9p by the end of next month.
- Phoenix Copper: A stealth rally with a 6p target: Phoenix Copper has been through the wars, but the shares staged a stealth rally on Thursday and Friday. They have broken above recent resistance around 0.45p. That breakout gives a conservative target near 0.60p, representing roughly half the range of the large down day on 6 July. If that target works, the chart deserves considerable respect.
- Rank Group: Positive consolidation ahead of its update: Rank is consolidating positively above its rising 50-day moving average, just under 97p. The next technical hurdle is the falling trend-channel resistance at 104p. A close above 104p would point towards 124p by the end of the month. The hope is that the upcoming company update will provide the catalyst, particularly following the RSI 50 rebound. Only a close back below 97p would materially damage the recovery argument.
- Synthomer: Above 110p, the channel top is the target: Synthomer has been rising above a rising 50-day moving average. The buy opportunity appeared around the 50-day line at 93p, with the top of the rising trend channel near 131p as the target. That target remains in play in the coming days, especially while the shares remain above recently broken resistance at 110p.
- Renalytix: Turnaround chart targets 4.2p, then 5.66p: Renalytix is always likely to produce a punchy call, particularly on the bullish side. The shares have already achieved the first target around 3.1p. The second target is 4.2p, where the 200-day moving average meets the upper parallel of the rising channel from March. That could be reached by the end of the month or even sooner.The chart increasingly looks like a significant turnaround. If the shares hold above 3.1p, the bigger-picture target is the top of February’s gap around 5.66p.
The Technical Picture Remains Constructive
The key chart signals across this rundown are consistent: rising 50-day averages, breaks through 200-day lines, RSI rebounds from the neutral zone and consolidations resolving higher. These are not guarantees, but they do provide a coherent technical case for maintaining an upside bias.
The important discipline is to respect the support levels. Whether it is 10,760 on the FTSE 100, 53,200 on the Dow, 76.51 in crude oil or the relevant 50-day average in the smaller shares, the levels matter most when a market is being tested.
For a broader explanation of the 50-day and 200-day moving averages used throughout these charts, the moving average overview from Investopedia is a useful reference point.
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.
