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, Ascent, Cadence, Challenger, GB Group, Gunsynd, Switch, Xtract.
Below are the levels, setups and targets I’m focused on as we head into the coming weeks. The tone is cautious but constructive: I’ll highlight the upside targets while flagging the levels that would turn the picture bearish.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Market overview
Markets remain largely range-bound inside rising trend channels that have been in place for months. Across indices and commodities the same rules apply: watch the 50-day and 200-day moving averages, note RSI behaviour around neutral 50, and wait for clean end-of-day closes beyond key levels before committing to directional trades.
FTSE 100
The FTSE is still crawling along the floor of a rising trend channel that’s been in place since June. The channel floor sits near 9,220 and the immediate hurdle to clear is roughly 9,250 on an end-of-day close.
- Near-term upside: a break and daily close above 9,250 opens the way to the next highs — 9,357 — with the top of the channel potentially as high as 9,530 by the end of next month.
- Key support: the 50-day moving average around 9,162. Only an end-of-day close back below that would suggest a return towards the 9,000 area.
DAX
The DAX continues to flit about inside its channel, trading roughly between the channel floor near 23,400 and the 50-day line at about 24,000. It’s a neutral, slightly indecisive picture for now.
- Downside break: an end-of-day close beneath 22,700 (and the 200-day moving average) would be bearish.
- Upside break: getting RSI back above neutral 50 (it’s around 46 today) combined with a clear break above the 50-day line could set the stage for a run toward the top of the April channel — potentially as high as 25,800 by the end of next month.
Dow
The Dow is making slow, steady progress. RSI behaviour is constructive — we’re seeing rebounds toward the mid-50s rather than stalling at 50, which is a positive sign.
- Target: the top of the channel is around 47,700 by the end of next month (or even sooner if momentum continues).
- Support: stay on the right side of 45,000 and the 50-day moving average near that level.
Cryptos
Bitcoin
Bitcoin is bouncing off the floor of its rising trend channel that’s been in place since March.
- Immediate levels: support near 111, with a break above 118 needed to push toward the channel top (as high as 133 by the end of next month).
- Risk: downside would involve a test of the 200-day line, currently around 103, if the floor gives way.
Ethereum
Ethereum is the most disappointing near-term chart — it slipped out of its rising trend channel and dropped below the 50-day line at 4,387.
- Support: we’re finding support around last month’s area near 4,060.
- Risk: there’s still the possibility of testing old July resistance around 3,930 before it resolves higher.
- Upside: best-case scenario still looks like 5,500 by the end of next month, though given recent price action a flatter, more shallow upside channel (top nearer 5,300) is probably more realistic right now.
- Signal to watch: current RSI is about 40 — wait for an end-of-day close with RSI back above neutral 50 to feel confident about a sustainable recovery.
Gold
Gold has been “above the clouds” in terms of the upside and is delivering strength. The chart remains constructive.
- Target: the top of the rising channel is towards 3,850 by the end of next month — possibly sooner if momentum continues.
- Support: remain on the right side of the recent peak near 3,720 to keep the bullish view intact.
Stocks: small-cap picks and setups
Now to the stocks I’ve been tracking on the Bulletin Board. These are the ones with chart setups worth watching — rising trend channels, moving average crossovers and RSI signals.
Stock of the day — Ascent Resources
- Context: a positive teaser around a Slovenian arbitration outcome has created momentum.
- Chart: bullish divergence into the announcement and a breakout above the 50-day line (at 35) for the first time since February.
- Resistance: initial resistance sits at the June peak near 0.55p; above that there’s little between 0.55p and 0.80p the next round number. There’s also a nearer resistance line at 0.43p — closing above that by the end of today’s session would be a good sign.
Cadence Minerals
- Update: we’ve hit the second target at 4p.
- Next target: look for up to 6p, potentially by the end of next month or sooner.
Challenger Energy Group
- Chart: shares are in a rising trend channel since June last year. We’re also in the run-up to a potential golden cross between the 50 and 200 day lines — a historically strong momentum signal.
- Target: the top of the channel is around 13p by the end of next month.
- Key level: remain above 8.4p (recent broken resistance) to keep the bullish scenario in play.
GB Group
- Action: showing signs of bottoming — RSI 50 rebound and a bounce off the 50-day line.
- Target: looking for £2.50 by the end of next month, possibly sooner, provided we stay above the 50-day moving average at £2.24
Gunsynd
- Signals: rising 50 and 200 day lines, together with multiple RSI rebounds above neutral 50 (a newer confirmation signal I’m using).
- Target: a minimum upside to 0.21 by the end of next month while staying above the 50-day line at 0.12.
Switch Metals
- Setup: enough chart structure to suggest a rising trend channel.
- Target: top of the channel around 12.3p over the next couple of weeks, while remaining above the 200-day moving average at 9.2p. The 50-day is already rising, which helps the bullish case.
Xtract
- Chart: rising trend channel, rising 50 and 200 day lines and an RSI 50 rebound.
- Target: looking for 1.25 by the end of next month while remaining above the latest 50 and 200 day lines around 0.72.
Key trading rules I’m using
- Wait for end-of-day closes beyond key moving averages before assuming a breakout or breakdown.
- Use RSI around neutral 50 as a confirmation — particularly watching for rebounds above 50 for fresh bullish momentum.
- Respect trend-channel floors and tops; targets are measured off those channels unless price action suggests a new structure.
- Stay cautious — a close back below the 50-day on many of these charts would shift the risk profile and increase the chance of deeper pullbacks.
Conclusion
Overall I’m cautiously optimistic. Several markets and stocks remain in rising channels and are behaving well around the 50-day lines, but confirmations (end-of-day closes and RSI above 50) are essential before leaning in hard. I’ll continue to monitor these levels and post updates as price action resolves — more updates tomorrow.
“ Note:These are my charts and levels — treat them as a trading framework rather than definitive predictions. Always manage risk and use your own judgement.”
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.
