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, Alien, Anglesey, Challenger, Chesterfield, Defence, Gear4music, Gem Resources, Landore, London BTC, Mosman, Petro Matad.
I run through the charts that matter today — major indices, cryptos, gold and a selection of small‑cap stocks I follow closely on the Bulletin Board Heroes channel. Below you’ll find the key levels I’m watching, what I’d consider the best and worst case scenarios, and the triggers that will confirm whether a bullish move has real conviction.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Market snapshot — what I’m watching this week
Overall the big picture is constructive: major indices are grinding higher inside established rising channels, Bitcoin is holding key post‑breakout support and gold is powering toward a higher target. A handful of mid‑ and small‑caps have provided fresh setups after fund raises or supportive corporate news. For each chart I highlight the important support and resistance levels and the likely path over the coming weeks.
Major indices
FTSE 100
The FTSE came close to the top of the June rising trend channel — the area I’ve been watching around 95.60–95.70 — and yesterday’s high was roughly 95.77. We’re slightly overbought after a few recent pushes; that can make the next leg up tougher.
- Bull case: An end‑of‑day close above 95.80 opens a run toward 97.60 (the May resistance projection) by the end of next month.
- Support: Recent support sits near 94.20; that’s my favoured downside pivot.
- Bear case: Worst case would be a slide toward 93.50, though geopolitical calm reduces the likelihood of that extreme drawdown.
DAX
The DAX is inching toward the top of its April rising channel — a level near 25,800 in my view. The recent flag breakout and a move above the 24,600 area would raise the odds of a run to that upper channel line, perhaps sooner than the end of November.
- Target: 25,800 by the end of next month (or earlier if momentum continues).
- Risk: A rug pull to the 50‑day moving average around 23,900 would be the main downside scenario.
Dow
The Dow looks like it’s consolidating near higher levels — a healthy sign when a market “dies” but does so up near the highs. The channel top I’m watching is around 47,900 .
- Key support: Staying above ~46,000 keeps the bullish case intact.
- Bear case: A pullback to the 50‑day line — roughly mid‑45,000s — would be the worst case over the near term.
Cryptocurrencies and gold
Bitcoin
Bitcoin is consolidating nicely above the old resistance near 11,800 , which is now acting as support. I’m watching for a sustained hold above ~12,000 to keep the upside case alive.
- Support: 11,800 (near‑term), with the 50‑day around 11,400 as a deeper test.
- Upside targets: A move toward the top of the channel near 13,300 in the coming weeks; best case extends to 15,000+ into November.
Ethereum
Ethereum has disappointed recently. It tested and fell below the 50‑day line (around 4,400), broke back under its July RSI uptrend and is now under RSI 50 — signs that another test of the lower channel floor is likely.
- Watch: A retest of the ~4,000 zone (floor of the July channel at ~3,940) is probable if momentum doesn’t improve.
- Sentiment: Current readings favour more downside pressure than an immediate breakout.
Gold
Gold is behaving well — it’s rallying fast toward the best‑case target of roughly 4,160 . The move has accelerated and I’m pencilling that target in now for the end of this month or even sooner.
- Bull case: While we remain above 4,000 the next objective is 4,160.
- Risk: Worst case would be a pullback to the old price channel top area around 3,860–3,890.
Featured small‑cap setups
Below are the names I talked about with the key levels and what would confirm each breakout. These are higher‑volatility, higher‑risk situations — treat them accordingly and size positions to your risk tolerance.
Alien Metals
- Support: Old resistance around 0.15p is acting as support.
- Trigger: An end‑of‑day close back above the 50‑day (0.18p) would underline the upside case.
- Target: 0.26–0.27p (upper 20s) by the end of next month.
Anglesey Mining
Anglesey cleared a recent conditional equity financing — that overhang is behind the stock now. The chart shows a gap down followed by a gap up (a bear‑trap/island reversal), which can be powerful if demand continues.
- Conservative target: A bounce toward the 50‑day near 0.49p before any pullback.
- Ambitious target: A move up to the 200‑day area around 0.70p by the end of next month is on the table if the rally persists.
Challenger
- Current: The initial 13p target has been cleared.
- Target: Upper parallel of the rising channel toward 18p (ideally by the end of this month).
- Key support: Stay above the gap floor at 11.5p.
Chesterfield
Funding news pleased the market and the shares hit the initial target just shy of 1.2p.
- Next level: I’m eyeing 1.75p by the end of next month while the shares hold above broken resistance at ~0.95p.
Defence Holdings
Despite a couple of volatile sessions, the chart is still in a rising channel from late August and the RSI has rebounded through 50.
- Support: Above 3p keeps the bullish case alive.
- Target: 5p (and possibly higher) by the end of next month.
Gear4Music
Gear4Music looks healthy: a strong gap up, price holding the gap as support and the 50‑day turning higher. That’s a classic continuation set‑up.
- Channel target: £3.80 on the rising trend channel.
- Signals: Price above the rising 50‑day is a very positive continuation signal.
Gem Resources
After a director funding the stock has stabilised and is approaching the top of a broadening triangle.
- Trigger: Staying above broken resistance around 0.58p.
- Target: 1.4p as soon as the end of next month if the breakout holds.
Landore
Landore has already hit the initial target around 5p.
- Upside: The next resistance line suggests a move as high as 7p by the end of next month, while remaining above ~4p support.
London BTC
Two consecutive sessions above the 50‑day (which is now rising) is a positive sign and the rising trend channel base is supportive.
- Target: 9.5p by the end of next month (or sooner) while above the rising 50‑day (5.4p).
Mosman
The picture is a little messy, but a bounce from the rising 50‑day and an emerging rise in the 200‑day hint at a potential long‑term base forming.
- Key level: Clearing 0.04p would help confirm a base.
- Stretch target: A retest of 0.07p if the upside momentum continues.
Petro Matad
Today’s update produced a classic double bear‑trap/island reversal — gaps down to new lows then gaps back up with visible accumulation. That’s a bullish reversal pattern when confirmed.
- Initial target: 3p (minimum).
- Stretch target: 2p and the post‑March resistance level by the end of next month if buying persists.
Summary and what I’ll be watching next
- Big markets: FTSE, DAX and the Dow remain inside rising channels — a close above noted resistance levels would promote further upside into the autumn.
• Crypto: Bitcoin is in a constructive consolidation above key post‑breakout support; Ethereum needs to regain the 50‑day to avoid another test of the lower channel floor.
• Gold: Momentum is strong and 4,160 is the near‑term objective.
• Small caps: Several names show bullish chart structures after funding or news; confirm with closes above the 50‑day or relevant channel breakout levels.
I’ll be watching closes, moving average behaviour and RSI readings over the next few sessions to see which setups confirm. More updates tomorrow.
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.
