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, Aurrigo, First Tin, Great Western, Guardian Metal, ImmuPharma, Sareum, SupplyMe, Tooru, Thor Ex, Thor Energy.
We have a mix of recoveries and consolidations across indices, a cautious tone for cryptocurrencies while Ethereum outperforms Bitcoin, a notable pull in gold, and several individual stocks showing clear technical setups and targets over the near term. Below, I run through the key levels, supports and targets to watch, mostly aiming for moves by the end of next month unless I flag a different time frame.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices
FTSE 100
We saw an RSI 50 rebound early in the week and decent progress towards record highs. The record level to note is 9,577 and I am targeting roughly 96.90 by the end of next month. Ideally the index stays above the recent broken resistance around the 9,460 zone. The worst case I am expecting is a rug pull down towards the floor of the channel near the 50-day moving average around 9,300.
DAX
Recovery, but not as strong as the Footsie. The market backed off the best levels near 24,600 but remains above the 50-day moving average and the 24,000 zone. While it holds those levels I am looking for a potential move to about 26,000 by the end of next month or perhaps by year end. A rug pull to the 200-day line near 23,000 could provide support, with a nearer support area around 23,700.
Dow
We broke an early-month resistance line then pulled back to test it again around 46,200. While above that level I am looking for the top of the May 2024 channel up near 48,300 by the end of next month. On the downside the 50-day line around 45,800 looks like the worst we should see on a setback. The RSI is comfortable above neutral at about 55, which supports the view that the 50-day will be the main downside buffer.
Cryptocurrencies
Bitcoin
Disappointing in terms of momentum but at least we are on the right side of the rising 200-day moving average, which sits near 108k. While Bitcoin trades between the 200-day and the 50-day moving averages I do not expect fireworks. A close back above the 50-day and a return of RSI above neutral 50 (RSI is about 43 now) would be the bullish trigger. The floor of the channel is around 103k, and a deeper rug pull could test June support near 98k.
Ethereum
Ethereum is outperforming Bitcoin at the moment, remaining well above its 200-day moving average at about 3,229 and comfortably above August support near 3,340. The uptrend line from April sits nearer 3,740, and the 50-day moving average is roughly 4,257. At present Ethereum is consolidating and the RSI sits below neutral at about 42, so I am watching for a clean break back above RSI 50 for renewed upside conviction.
Gold
Gold has suffered a rug pull and a fairly sharp leg down. The earlier view of 4,060 as potential support looks reasonable — recent lows have been close to that area (the latest intraday low printed in the low 4,000s). As long as we stay above 4,060 on an end of day basis I am looking for a recovery first to around 4,400 and a best case scenario as high as 4,500 by the end of next month. If gold cannot hold 4,060 the structure becomes more vulnerable.
Selected stocks and small caps
Here are the charts I am watching on the bulletin board, with key support, resistance and targets.
Aurrigo International
Back above its 50-day moving average with a nice push through yesterday and today (opened low, closed high). The 200-day moving average near 60p is the next clear level and the top of the channel is roughly 76p to aim for.
First Tin
Strong chart. We have already built towards the top of the rising channel and a target around 9p looks realistic by the end of next month or sooner. The shares have shown an RSI 50-plus rebound and have been above the rising 50-day line since late July.
Great Western Mining
Decent turnaround with the 200-day line acting as support near 1.75p. Above that we can look to around 2.5p at the top of the rising trend channel from June. Near-term support to watch is around 1.6p, and the RSI is comfortably bullish near 61.
Guardian Metals
One of the stronger explorer/developer setups. Started the year low and is now over a pound. We had a bounce off the rising 50-day moving average — staying above the 50-day keeps the path to retesting the earlier-month highs through about 140p in play by the end of next month. I want to see the RSI back above 50 to confirm momentum.
ImmuPharma
We broke the resistance line near 10.75p and hit resistance up to 14p today. If the stock can clear 14p then a move to around 23–24p by the end of next month is a reasonable target. Noticeably the shares have produced three clear bounces off RSI 50, which is a robust combination for the upside.
Sareum Holdings
Had a gap down that looks like an overshoot and a classic bear trap. The rebound below about 11.25p recovered above the floor of the channel near 13.8p. The top of the range around 26p is a plausible target by the end of next month if the recovery continues.
SupplyMe Capital
Quite the comeback from very low levels. We are trading close to a legacy resistance projection around 0.01 and the upper parallel of that projection points towards roughly 0.018. Staying above the 0.0008 level is important for bulls; fundraisers or other corporate activity could complicate this picture, but the recent price action looks like a strong return.
Tooru
Released a decent update today and the shares gapped through the 50-day moving average and the top of a falling trend channel near 0.24. The obvious next target would be a retest of July’s spike around 0.35. The 50-day now sits nearer 0.19 and should act as support while the recovery holds.
Thor Exploration
We have a clean rising trend channel with the floor around 54p. Staying above that keeps the path to 80p by the end of next month intact, although the recent wobble in gold has taken a bit of wind out of the sails.
Thor Energy
First target around 0.85p has nearly been hit and the upper parallel of the channel points toward about 1.2p. A swift clearance of 0.85p on the right side of November would support the move higher toward that upper target.
Conclusions and what I am watching next
- Indices: watch the 50-day moving averages as the main downside buffers for the FTSE, DAX and Dow. RSI above 50 on the big indices supports the bullish case.
- Cryptos: Bitcoin needs a close back above its 50-day and RSI above 50 for a proper breakout. Ethereum remains the more constructive of the two while it trades above its 200-day.
- Gold: 4,060 is the key end-of-day support level. Holding that keeps a move back to 4,400–4,500 feasible.
- Small caps: several individual charts look constructive (First Tin, Great Western, Guardian Metals, ImmuPharma). For the rest, keep an eye on the 50-day and 200-day moving averages and the RSI 50 level for confirmation of the next leg.
More updates tomorrow as price action evolves and we get fresh data. Stay nimble and keep your stop levels clear — channels and moving averages remain the best way to manage risk here.
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.
