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, Contango, Empire Metals, Frontier Developments, Greenroc, Georgina, Kromek, and Metals One.
Below, I run through the charts I am watching right now, the key technical levels to respect, and the targets I am looking for by the end of next month.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Market overview
There is constructive momentum across many instruments so long as key moving averages and channel floors hold. In plain terms, staying above the 50-day moving average and keeping RSI above the neutral 50 generally increases the odds of upside continuation. Conversely, multiple RSI fades below 50 raise the risk of a retest of lower support.
Major indices
FTSE 100
The FTSE has broken the near-term resistance we were watching and is now looking for the top of the rising channel.
- Recent breakout above near-term resistance in the 9,470 area.
- Immediate support to protect is the 50-day moving average near 9,300 .
- Secondary support on a pullback around 9,390 .
- Upside target: the channel top as high as 9,670 by the end of next month, provided we remain above 9,300.
DAX
The DAX is not quite as shiny as the FTSE but it is above its 50-day line and the floor of its channel, which is constructive.
- 50-day moving average roughly 24,000 .
- If it holds, the next obvious target is the top of the rising trend channel near 26,000 by the end of next month.
- On any rug pull we would hope not to see a drop below the channel floor around 23,600 .
Dow
The Dow cleared late-September resistance and is trading near its record highs.
- Breakout through the late-September resistance at 46,200 has followed through.
- Remain above 46,200 for an extended run toward the top of the channel at about 48,200 by the end of next month.
- 50-day moving average sits near 45,800 and represents the worst we expect on any short-term rug pull.
Cryptocurrencies
Bitcoin
Bitcoin is looking a little fragile after failing at the 50-day moving average and rotating back toward the 200-day line. Two RSI fades below neutral 50 raise the chance of a test of lower channel support.
- Failed at the 50-day moving average around 114k and pulled back to the 200-day line near 108k .
- Key floor of the channel ~104k . Worst-case rug pull toward the mid-June support 98k .
- Prefer to stay above the 200-day line to keep the higher-probability bullish view intact.
Ethereum
Ethereum has broken below its 50-day and is flirting with a test of the April uptrend support. RSI is below 50 which increases the risk of a retest of earlier summer levels.
- Failed below the 50-day moving average at around 4,269 .
- Risk of a test of April trendline support near 3,719 .
- Worst-case support from August sits around 3,350 , just above the rising 200-day line near 3,219 .
- Current RSI 41 , so caution until RSI climbs back above 50.
Gold
Gold suffered a pullback yesterday that we had always considered a possibility. We already had a rug pull level identified for October and yesterday’s low sat right around that zone.
- Earlier October resistance/support area around 4,060 ; yesterday’s low ~ 4,080 , which ties into the plan.
- Ideally we remain on the right side of 4,000 .
- Support to watch near 4,600 , with a best-case upside target near 4,500 by the end of next month if momentum returns.
Selected stocks on my watchlist
Contango Holdings
I had been suggesting that 0.80p could be the low and the shares did dip below briefly, but they have since cleared the slack and are back above 0.8p. The longer they stay above the May–August support, the better the chance of a return toward prior highs.
- Key immediate support: 0.80p (May–August support).
- 50-day line near 0.87p — a cautious trader might wait for an end-of-day close above this level.
- Target: 1.30p by the end of next month if the uptrend continues.
Empire Metals
A rocky ride for Empire Metals but meaningful support showed up around the old resistance area. Everything hinges around the 50p level.
- Found support at the old resistance around 30p .
- Need a break above the 50-day line and resistance at 50p to target a move back toward the highs.
- While below RSI 50 (current RSI 46 ), a retest of the 30p zone remains a risk.
Frontier Developments
We have a clear rising trend channel since March. Recent broken resistance around £4.50 looks to be the pivot point for the next leg higher.
- Remain above recent broken resistance near £4.50 .
- Top of the channel is heading for around £5.40 as a target by the end of next month.
Green Rock
Funding news from Denmark sparked a gap higher and the stock gapped off the floor of its rising channel. That gives a straightforward risk/reward play.
- Gap off the floor near 4p . While above that level the upside remains open.
- Target: around 5p by the end of next month.
Georgina Energy
It has been a while since Georgina has made the risers list, but today’s move is encouraging — rising on no specific news. It has had its share of reputational headwinds so this pop is welcome.
- Initial target: the 200-day line near 6.75p .
- Best-case end-of-next-month target: the old July peak around 8.75p , while remaining above the 50-day line near 5.1p .
Kromek Group
This looks like a mid-move consolidation after an unfilled gap to the upside. RSI above 50 and the price action so far this month suggests a new move up is forming.
- Recent support around 6.75p .
- Minimum upside target: 7.85p (top of the channel).
- Possible spike toward 9p by the end of next month while staying above the recent support level.
Metals One
Metals One missed out on the March to May rally but is trying to bounce now. It has cleared the 50-day line and looks for a move to the top of a converging pattern.
- Back above the 50-day line near 4.05p .
- Initial target at the top of the converging daily formation around 5.75p , possibly sooner than the end of next month.
Final thoughts
Overall the technical tone is constructive so long as the key moving averages and channel floors hold. Watch RSI behaviour closely: sustained trading above 50 supports further upside, while repeated RSI fades below 50 increase the probability of retests of earlier support zones. I will keep monitoring these levels and charts and provide another update 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.
