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, Ethereum, Gold, Blencowe, Catenai, Cloudbreak, Conroy, Defence, Empire, First Development, Gear4music, Hemogenyx, Iconic Labs, Landore, Orosur, Peel Hunt, Surface Transforms, Seed.
Here’s my Friday rundown of the charts and setups I’m watching as we head into the weekend. I cover the major indices, crypto, gold and a selection of small-cap stocks where technicals are starting to look interesting. Expect targets, key support and resistance levels, and what the RSI and moving averages are indicating at this time.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Quick market snapshot
Overall theme: risk-on, with a few “rug pull” scares earlier in the week but many charts holding important supports. RSI behaviour and price relative to the 50-day/200-day lines remain the most useful guides for where the next leg higher (or a corrective move) might come from.
Indices
FTSE 100
The FTSE finished the week better after bouncing off the lower edge of its channel following an early-week pullback. RSI sits around the mid-50s (about 58) — a constructive place for stronger gains.
- Near-term target: 9,450 (ideally by the end of this month).
- Immediate floor: the channel floor at 9,120.
- Downside technical support: 50-day line at 9,069 (we haven’t closed below the 50-day since early May).
DAX
Trying to bounce off the channel floor (mid-channel area 23,500). Momentum needs to improve — RSI is still below neutral 50.
- Initial upside: the 50-day line around 24,000–24,100.
- Watch for RSI back above 50 and a clear break above the 50-day to confirm strength beyond a simple buy-the-dip bounce.
Dow Jones
Battle around the 45,000 level continues and, so far, the market is winning. We’ve had a clean bounce here and multiple RSI rebounds above neutral 50 in recent weeks — bullish.
- Near-term target: top of the May 2024 rising trend channel 47,500 (possible by the end of the month).
- Downside technical: 50-day line 44,600 in a rug-pull scenario.
Cryptocurrencies
Bitcoin (BTC)
Price action looks healthier than some expected — several bounces off RSI support in the mid–upper 30s and a break above August resistance around 110 (k). The 50-day line is the immediate target.
- Initial target: 50-day line 115k.
- Best case this month: up to 130k (top of the rising channel from end of February).
- Downside: a rug pull below channel floor at 107k would point toward the 200-day line ~101k.
- A clean RSI >50 would be the simplest confirmation to watch for over the weekend.
Ethereum (ETH)
Strong RSI action — recent bounce at neutral 50 for the second time this month. We’re watching the important 4,500 level; an end-of-day (or intraday) close above that would open the path higher.
- Floor of channel: 4,250.
- Key breakout level: 4,500 (multi-resistance over the past week).
- Upside target: potentially as high as 5,500 by month-end if momentum continues and if rotation from BTC into ETH occurs.
Gold
Gold is attracting attention and speculation. From a technical standpoint it looks bullish while above broken April resistance and the old April peak.
- Near-term upside: targeting 3,800 while price holds above 3,500.
- Key broken resistance now acting as support around 3,400.
Selected small-cap stock notes
Below I summarise a number of small-cap charts I’ve been tracking — support/resistance, targets and a short technical read on each.
Blencowe
- We’ve broken above the psychological 5p level — minimal resistance expected until 6.25p (upper parallel of the broadening triangle from November).
- Supports remain well above rising 50- and 200-day lines after a long consolidation.
Catenai
- Bounced off the floor of a rising trend channel and cleared the 50-day line at 0.27p.
- RSI popped above neutral 50 and is showing extended momentum — target up to 0.48p by month-end (top of the channel).
Cloudbreak
- After a rug pull from 0.92, the chart looks better above the broken resistance around 0.55p.
- Above 0.7p, there’s room to run to 1.70p potentially by next month. RSI remains above neutral 50 on retracements — constructive.
Conroy
- Target of 10p has been hit — nice to see a target reached.
- Next target: 22p (upper parallel of rising channel). Key recent support 8p.
Defense Holdings
- We hit the second target (lid line) at 1.25p previously. Shares have eased back but while above the old peak 0.93p, a retest of 1.2–1.3p remains possible.
Empire Metals
- Strong rally — market cap approaching £0.5bn. The chart suggests the shares could retest 83p or even reach 95p on a continuation leg.
- Note from an investor: is the price getting ahead of fundamental progress? That’s a valid question — monitor around the 60p support zone for risk management.
First Development
- Newer setup with a rising trend since late July. While above 9p, looking for 11–13p. 50- and 200-day lines currently around 6.75p and 3.5p respectively.
Gear4Music
- Target achieved at the top of a broadening triangle (265p). Best case target over 1–2 months £3.70 (former resistance on the way down).
Hemogenyx
- Ambitious target was hit briefly near £9.90. To sustain a retest of the £9–10 zone, shares need to stay above £6.
- Watch for the looming golden cross — historically a strong part of the cycle for this chart. Market cap still small (£28m), so volatility could remain high.
Iconic Labs
- Been through rough times, but recent break above 3p and an RSI >50 gives some hope for at least a retest of 4.5p (spike level from early last month).
- Binary, high-risk setup — attractive only to those who can stomach more volatility.
Landore
- Delivered upside and cleared recent resistance 3.75p. Above that, look for 4.75p and best case up to 5.9p by the end of next month.
Orosur
- Target of 19p has been hit — now looking for further upside to 29p by month-end while remaining above 19p.
Peel Hunt
- Positive company commentary has coincided with a decent chart move. Above the floor of the recent gap at 102p, a push to 130p+ by month-end is possible.
Surface Transforms
- Good bull run — cleared the second target 1.8p. Above that, next resistance target 2.7p (previous resistance from April 2023).
Seed Innovations
- Dynamic recovery (share buyback remembered). Current price 3.14p, with the 50-day line at 2.35p acting as a base.
- Best case by end of next month: 5.3p (previous resistance on the way down), driven by RSI bounces and price holding above short-term support.
How I’m reading these charts
Key tools driving the analysis:
- RSI: neutral 50 is the inflection — rebounds above 50 are constructive, repeated mid-30s bounces can be a form of accumulation.
- 50-day and 200-day moving averages: act as dynamic support/resistance and help define ‘worst case’ downside levels in a corrective move.
- Rising trend channels and prior resistance: targets are often the top of channels or former resistance that becomes a magnet.
- Risk management: note the obvious “rug pull” levels. If charts fall through the channel floor or the 50-day, reassess and tighten stops.
Summary and next steps
We remain broadly constructive: indices, Bitcoin and Ethereum show positive technical momentum while gold is drawing attention on the upside. A lot of small-cap charts are either hitting targets or forming actionable setups — but many carry binary risk and require tight risk management.
I’ll be watching RSI behaviour, closes relative to the 50-day line, and whether key channel tops get tested and taken out. More updates will follow over the weekend — I’ll keep an eye on any changes to these levels and report back.
“More updates over the weekend.”
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.
