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, Audioboom, Amazing AI, Blencowe, B90, Cadence, Defence, Equipmake, Empire Metals, Genflow, Harena, Kefi, Spire, WeCap.
This weekend, I ran through the charts and levels that matter right now — from the FTSE 100 and DAX to Bitcoin, Ethereum, gold, and a long list of small-cap plays. Below is a straightforward, chart-focused roundup of where things stand, the technical levels I’m watching, and the scenarios that will change my view.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Quick market overview
Across the board we’ve got a mix of resilience and indecision. Some markets are grinding higher within long-standing trend channels, others are drifting and look “dead” until momentum returns. A recurring theme is RSI behaviour — multiple RSI 50 rebounds have been a strong lead for some indices and individual names, and where RSI sits relative to 50 remains a useful guide for bias.
Major indices
FTSE 100
The FTSE has largely ignored the midweek RSI 50 rebound — we saw resistance around the 9,240 level and now the index is testing the floor of the rising trend channel that’s been in place since June (roughly 9,200). Below that is the 50-day moving average near 9,150, although at this stage an even lower drop is not my base case.
For bulls: a proper end-of-day close through 9,250 opens up a run to the top of the channel near 9,500 by the end of next month. For bears: a failure to hold 9,200/9,150 would put pressure on the 50-day moving average.
DAX
Nominally still in the rising channel from April, the DAX had a little wobble midweek. The channel support sits around 23,600, with the 50-day moving average just under 24,000. The RSI is nearer 45, below the neutral 50 level, so if you’re not in this market already my suggestion is to either wait for an RSI breakout above 50 or consider selling into strength up to the 50-day line.
Dow
The Dow is the most constructive of the big three — once clear of old August resistance near 45,800, there’s a relatively clean path to the top of the rising trend channel at about 47,700 (target by end of next month, possibly sooner). Be mindful that the closer we get to a channel top the higher the chance of a sharp pullback; a rug pull would likely find support around the 50-day line near 45,000.
Cryptocurrencies
Bitcoin
Bitcoin has been dithering in the upper teens (roughly 117k–118k on the peaks), with support currently around the 50-day moving average (about 114k). As long as price holds above the 50-day and RSI remains above 50, I’m targeting the top of the rising trend channel at roughly 131k by the end of next month. Adoption/treasury buying hasn’t produced explosive moves yet, but the technicals are constructive while these support levels hold.
Ethereum
Ethereum carries high hopes — the chart still points to a potential run to 5,500 by the end of next month, though that might be slightly optimistic given the recent chop. The price is hovering just above the floor of its rising trend channel (around 4,350), RSI is above the neutral 50, and the most reliable stop is the 50-day moving average at 4,363. If we keep an end-of-day close above the 50-day and RSI stays healthy, a push toward 5,500 remains the base-case upside scenario.
Gold
Gold pulled back midweek but finished the week solidly above 3,600. While we remain above that level, the top of the rising channel (from April) points to as high as about 3,850 by the end of next month. This looks like a mid-move consolidation with upside potential — constructive technicals for bulls while 3,600 holds.
Stocks I’m watching
- Audioboom — Painful in the recent past but improving. A golden cross (50 over 200) was delivered on Friday and price action was strong (opened low, closed high). With recent support near 480p and three RSI 50+ rebounds this month, a move up to 750p by the end of next month is on the cards while price stays above that recent support.
- Amazing AI — Recently greeted positively after announcements (including a crypto-treasury policy update). Price remains above the 50-day (1.16p); filling the gap toward 2.75p is the upside scenario by the end of next month. RSI is still above neutral 50.
- Blencowe — Fundraises are behind the company and we’ve seen a V-shaped rebound. The initial target around 6.1–6.2p may come as soon as the end of this month; beyond that, 8p looks plausible by the end of next month while the uptrend remains intact.
- B90 — The stock has gapped to the upside after a step-style ascent recently. Extended RSI 50 rebounds since late June support a bullish target around 5.25p by the end of next month, provided it holds above the rising 50-day (3.15p).
- Cadence — Already in recovery, having exceeded a previous target around 4p. If price can quickly break higher from this zone we’re looking toward the 6p area (resistance on the way down in 2024). Bullish while above the previous target near 2.5p.
- Defence Holdings — The shares bounced just below our third target (1.1–1.4p area). Next target is 2p, and a best-case scenario would see as much as ~3.5p by the end of next month if the company’s shareholder messaging over the next 24–48 hours delivers.
- Equipmake — There’s an unfilled gap to the upside through resistance (around 1.9p). That’s typically bullish; the technical set-up points to as much as 4p by the end of next month while price trades above the rising 50- and 200-day lines.
- Empire Metals — A constructive recovery: end-of-day closes back above the rising 50-day and above the old broken neckline (around 49p). Above 49p, the channel top sits near 74p — that’s achievable next month or sooner if momentum continues. RSI has moved back to ~55, which helps the case.
- Genflow — Recently broke April resistance and the 200-day moving average around 1.2p, and cleared a falling trend channel. With an unfilled gap to the upside and a couple of RSI 50+ rebounds behind it, Genflow could push toward ~2.5p by the end of next month.
- Harena — Bounced above the rising 50-day line with an RSI 50 rebound. The target has nudged up to 2.2p; ideally achieved by the end of this month but it could slip into October. Upside is valid while price stays above the 50-day (1.5p).
- Kefi — Near two-year lows but showing steady progress since the early-month rug pull. A previous target of 1.1p now looks like a fair objective for the end of next month, with the key support being the early-September peak around 0.87p on an end-of-day close basis.
- Spire — Larger than the usual microcap focus, but the shares respected the trend channel drawn on Friday at 2.47p. An end-of-day close above that level points to 2.80p by the end of next month; Friday’s speculation around the company mulling options helped sentiment.
- WeCap — On the edge of a breakout both in chart terms and with discussions of a US listing. An end-of-day close above 2.8p should clear the way toward 4p (old resistance on the way down) by the end of next month. Keep an eye on staying above the recent broken resistance at 2.25p; RSI has rebounded to support this thesis.
How I’m trading this set-up
My approach remains simple: use the RSI 50 level and the 50-day moving average as primary filters. If RSI is above 50 and price is trading above the 50-day, the bias is bullish and I look to targets suggested by the tops of the rising channels or gap fills. If RSI is below 50 or price closes back below the 50-day, I turn more cautious and consider selling into strength or using tighter stops.
Wrap-up
There’s a mix of steady trends and chop right now. The Dow, Bitcoin and gold look constructive within their channels. The DAX needs a decisive RSI move to persuade me to be more positive, while the FTSE is at a key decision point around the 9,200–9,250 zone. Among small caps, a few names look technically primed for short-term rallies (Empire, Genflow, Blencowe, Equipmake), but discipline on stops around the 50-day is essential.
More chart updates tomorrow — I’ll be watching closes around the key levels listed above and will adjust targets if the technical picture changes.
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.
