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, Agronomics, Audioboom, Frontier, Light Science, Mila, New Frontier, Newmark, Strategic, Tap, Uru, Xtract.
We are clinging to rising trend channels in the larger indices, watching RSI 50 rebounds for momentum signals and picking a handful of bulletin board stocks that look ready to move. Below, I take you through the charts, key support and resistance levels, and short-term targets to watch over the coming weeks.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major Indices
FTSE 100
The FTSE has been tracking a rising trend channel since June and is approaching the top of that channel.
- Immediate resistance: around 9,680–9,690.
- Best case (if we close above 9,690): target the red May resistance projection near 9,830 by the end of next month.
- Downside support: hope to remain above the October initial resistance area around 9,577, although mild overlap below that is possible.
DAX
Price action has been slow but stable, resting just above the 50-day moving average and the 24,000 level.
- Near-term bias: half full rather than half empty while above the 50-day line.
- Upside target: the top of the rising channel from April near 26,000 by the end of next month.
- Key support / worst-case floor: channel floor around 23,600.
Dow Jones
The week closed with a push to record highs. Momentum indicators have flashed a positive read.
- Upside target: 48,300 by the end of next month.
- Support: the 50-day line around 45,900, which has acted as support earlier in the month and in August.
- Watch out for headline shocks that could produce a rug pull, but the RSI 50 plus rebound is constructive.
Cryptocurrencies
Bitcoin
Bitcoin has made a positive development by pushing above the now rising 50-day moving average, with both the 50 and 200 day lines trending up.
- Recent low was in the $104–116 area; that may have been the lasting low for this swing.
- Near-term target: previous record high near $126 (thousand? depending on chart scale) with a best-case channel target up to $135 by the end of next month.
- This is the shot in the arm bulls and Bitcoin treasury holders would like to see.
Ethereum
Ethereum has lagged but is starting to show signs of life, pushing toward and through the 50-day moving average.
- Critical levels: staying above 4,000 is ideal; alternate uptrend support lies around 3,860.
- Upside target: main resistance from August near 4,650 by the end of next month, and we want to see the market hold above 4,000.
- Momentum note: breaking the RSI resistance line around 57 after reclaiming RSI 50 could unleash a stronger move.
RSI 50 plus rebound — a common theme and a useful early indicator of upside momentum.
Commodities
Gold
Gold had a strong push toward record highs and is looking to find interim support at psychologically important levels.
- Support: hope to hold at or above $4,000, with the top of the old rising trend channel near 3,970 acting as nearby support.
- Upside resistance: recent resistance around 4,180 would be the first port of call on any recovery.
- RSI remains above neutral 50, which supports the idea of base-building above old resistance.
Bulletin Board Stock Picks
Picking through some lesser-followed names that are showing fresh setups — several have broken above key moving averages, some show bear trap rebounds and multiple RSI 50 plus rebounds. Targets are generally short term, looking toward the end of next month.
Agronomics
- Setup: double bear trap rebound from below the 200-day line at 6.6p.
- Technicals: back above the 50-day at 6.8p with an RSI 50 plus rebound.
- Target: up to 10p by the end of next month.
Audioboom
- Price action: flipped back above the 600p old resistance level and formed a higher low.
- Momentum: 50-day moving average rebound earlier in the month and an RSI 50 rebound.
- Targets: first port of call around 745p; prior thesis was a break above 775p could open up much higher levels.
Frontier IP
- Broke above the 200-day line at 21p.
- Technical: rising 50-day line and an unfilled gap to the upside.
- Target: 30p by the end of next month.
Light Science
- Shares have gapped up following an RNS and cleared the 4.5p break level.
- Near-term support: stay on the right side of 6p.
- Target: around 7.5–7.12p next, with potential for further acceleration above the 7–8p zone.
New Frontier Minerals
- Pattern: U-shaped or V-shaped bull flag.
- Support: needs to remain above 0.80p.
- Target: around 1.25p by the end of next month.
NewMark Security
- Chart action: moving toward the initial target around 135p.
- Next target: best case up to 170p by the end of next month.
- Support: remain above recent intraday support near 110p.
Strategic Minerals
- Transformation visible on the chart — looks like a bid move consolidation.
- Targets: already cleared previous target at 1p and looking toward 1.3p by the end of next month.
- Momentum: two strong RSI 50 plus rebounds support continued strength.
Tap Global
- Previous resistance around 3p often found sellers; now the shares look stronger, helped by director buying and move into institutional Bitcoin trading.
- Targets: initial target 3.6p, then 5.5p by the end of next month if support holds around 2.75p.
- Momentum: earlier RSI 50 rebound.
URU Metals
- Shares have broken the previous target near 10p.
- Technical: multiple RSI 50 plus rebounds and an imminent golden cross in the next week or so.
- Target: pushing to 14p in early November, with the golden cross run-up often the strongest phase.
Xtract Resources
- Bounced off the 50-day line while both the 50-day and 200-day lines are rising.
- Target: top of the summer 2023 channel near 1.25p by the end of next month.
- Context: small resources look well positioned for a breakout phase while staying above the 50-day line.
Key Themes to Watch
- RSI 50 rebounds are showing up across assets and often precede upside moves.
- Rising 50 and 200 day moving averages are supportive; watch for golden crosses on small caps for acceleration.
- For indices and crypto, staying above key moving averages and trend channel floors is the difference between a contained rally and a deeper pullback.
- Short-term targets are generally clustered around the end of next month; adjust positions if price fails to hold the near-term supports listed above.
“Stay above the 50-day line and the momentum picture stays constructive.”
That is the roundup for today. I will follow up with fresh updates as charts evolve.
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.
