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, ActiveOps, Ceres, Eco Buildings, Empire Metals, Harena, Kefi, Light Science, Landore, Mast, Nuformix, Pulsar, Petro Matad, Rainbow, Red Rock, Strategic Minerals, Smarter Web, Sanderson, Wildcat.
Below you’ll find the levels I’m watching across major indexes, cryptocurrencies, gold and a long list of small-cap charts I cover each day.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Overview — the big picture
Markets remain in a generally constructive trend but with plenty of sideways action and a few kinks in momentum. We’re still inside several rising channels that have been in place since the summer, and much of today’s action comes down to whether price can clear short-term resistance or holds above important moving averages (50- and 200-day). RSI behaviour — particularly rebounds around the neutral 50 level — continues to be an important guide for the strength of these moves.
FTSE 100
Price action: still inside the rising trend channel from June. RSI shows a kink around the 9,480 zone — a resistance area. Support to watch:
- Primary near-term support: 9,350 (old Aug–Sept resistance) and yesterday’s low around 9,384.
- Near-term resistance: 9,480 — an end-of-day close above here would open a move toward the top of the channel and a 9,640 target.
- Best case (longer term): red May resistance line projection around 9,820, but for now focus on the near-term 9,350–9,480 range.
DAX
The DAX bounced off the rising 50‑day line with a nice hammer candle. Both the 50‑ and 200‑day moving averages are rising and RSI sits above neutral 50 — that’s constructive.
- Range: roughly 24,000 (50‑day area) up to record highs near 24,700.
- If 50‑day support holds: higher probability of continuation toward the highs of the range.
Dow Jones
Choppy trading but the key message is a bounce from the 50‑day line — intraday dips below that line have presented buying opportunities. Resistance to clear sits near 46,400 (minor resistance from early month).
- End-of-day close below the 50‑day (45,603) would open the door to test July resistance as support around 45,000 (worst-case near term).
- Upside if 46,400 is cracked: move toward the top of the rising trend channel from May last year, as high as 48,000.
Cryptocurrencies
Bitcoin
Between the floor of a rising channel and the 50‑day moving average — a slightly precarious spot.
- Key upside clearance: 116 (recent resistance) to regain momentum.
- Key downside: a break of 110 (channel floor) would likely head toward the 200‑day average around 107 — that looks like the best entry area if we slide lower (even 104–105 would be attractive for a rebound).
- Negative: below the 50‑day and RSI has failed below neutral 50 — a test of the 200‑day is possible.
- Best case target: 134 by the end of next month (or by year‑end if more cautious).
Ethereum
Similar set-up to Bitcoin — consolidating near the floor of its channel and between that floor and the 50‑day moving average.
- Channel floor: 3,940. 50‑day: 4,342.
- RSI showed a 50 failure but price is holding close to the channel floor — if it holds, best case is toward 5,400 (channel top/July level) by the end of next month.
Gold
No issues here — gold has hit the one‑year resistance line target and printed a high near 4,180 (I’ll call it 4,180). While price remains above initial October resistance around 4,60, the upside momentum looks relentless and further upside is likely before long.
Key takeaways
- Market technicals are mixed but leaning constructive: many indices are holding rising 50‑ and 200‑day lines and RSI rebounds around neutral 50 are the early signal to watch for continuation.
- For cryptos, the 50‑day vs 200‑day dynamic is crucial — a slide to the 200‑day would offer a better risk/reward entry in Bitcoin and Ethereum if it materialises.
- Small‑cap watchlist: several clear breakouts and gap reversals (Eco Buildings, Pulsar, Petro Matad, Ceres) — keep positions valid only while they remain above the moving average/support levels I’ve listed.
“”The secret sauce is multiple RSI 50 rebounds — we tend to see those before a big upside move.””
That’s it for today — more updates tomorrow from Zach’s Traders Café. Keep an eye on the key levels above and manage risk around the support/moving average points I’ve highlighted.
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.
