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, Atlas, Alkemy, Capital Metals, Chesterfield, Fulcrum, Ingenta, Poolbeg, Pensana, React, Tooru, Tap, WeCap.
The theme today is rhythm more than fireworks, with a number of markets hugging key 50-day moving averages and RSI 50 thresholds. Picks below include my near-term targets and the conditions that would invalidate the bullish case.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major Indices
FTSE 100
The FTSE 100 is trading close to the top of the rising trend channel from June. The near term projection sits around 9700, which is the target to watch into Halloween. Immediate support to keep the bullish case intact is the old resistance at 9577. Any day close through 9700 leaves room to test up toward 9830, the May resistance line projection for next month.
DAX
The DAX has been very quiet, trading in a range capped by roughly 24,400 and held under the 50 day moving average just under 24,000. The RSI is sitting above neutral 50 which is constructive. Best case if it joins other rising markets is a run toward the top of the April trend channel at about 26,000.
Dow
The Dow is progressing toward the top of a rising trend channel from May of last year, with a target around 48,200. Momentum as measured by RSI has been holding around the mid 50s and the 50 day line has acted as support several times. A rug pull would likely find the 50 day line area around 46,000 as downside support.
Crypto
Bitcoin
Bitcoin is trading either side of the 50 day moving average, which is a healthy consolidation zone. RSI is above neutral 50. A clean end of day close through recent resistance at 116 would open a path to retest the month high at 126. Best case I am watching for up to 130 by the end of next month if the trend channel holds.
Ethereum
Ethereum has not followed through on last month’s hype and is currently squashed between the 50 day moving average at about 40232 and the April uptrend line near 3860. Expect a range bound move between those levels unless we see an end of day close through the 50 day line at 4232 or a break of the RSI resistance line around 56. Best case target sitting at the top of the falling channel near 4600 for the end of next month.
Gold
The recent rally in gold has been punctured with gap down price action. The market has lost the neutral 50 level on the RSI and is below the recent high at about 4020. Expect a test of the 50 day moving average around 3769 unless the market can quickly regain momentum and retest spike highs nearer 4400.
Selected stocks and small caps
Below are the stocks I reviewed today, the technical set-ups I like and short-term targets (generally into the end of next month) while the current technical picture holds.
- Atlas Metals – Broke the triangle at about 36p and gapped up. The V-shaped formation and repeated RSI bounces above 50 suggest a push to around 70p (retest of last October resistance). On the downside watch 40p on an end of day close.
- Alkemy Capital – In a rising trend channel with a target near £3.60 while above recent broken resistance at 266p on a close basis. Shares have bounced off a rising 50-day and seen RSI recover above 50. Keep above about £2.50.
- Capital Metals – Encouraging bounce above a rising 50-day that also finesses an unfilled upside gap. RSI back above 50. Minimum target to the top of the rising channel around 5.3p for next month, with a best case breakout target nearer 7p if sentiment or news turns very positive.
- Chesterfield – Spiked through the initial target and held the gap. Pattern looks like a saucer reversal with multiple RSI bounces above 50. Next target near 1.75p, potentially sooner than the end of next month.
- Fulcrum Metals – Bounced off a falling 200-day moving average and has already hit the initial 6.1p target, which should act as new support. While above the 6p zone, the target is up near 10.75p for the end of next month.
-
Ingenta (a less‑watched name) – Mid-move consolidation, bounced from RSI 50 and gapped up today. Top of the channel near £1.00 by end of November while holding support in the low 70p area (nominally 73p).
- Poolbeg – Has pushed through a rising 50-day moving average recently and is making a solid advance. Targeting the top of the channel around 5.5p by the end of next month while holding the 50-day (around 3.65p).
- Pensana – Has seen heavy media attention and trades in a rising channel with the top near £1.95. A daily close back above the 50-day (around 126p) would resume the rally, with the RSI recovery also important.
- React Group – Gapped up through a now rising 50-day line and shows a bullish divergence pattern where price made lower lows but RSI traced higher. Above the 50-day near 48p, target is around 62p into next month within a broadening triangle base.
- Tooru – Followed through on a strong update last week, hitting the first target at 0.25p. The second target is about 0.4p by the end of next month. Both 50- and 200-day lines are rising and a golden cross appears to be in the run-up.
- TAP Global – Struggling to clear the 3p area. Resistance above is around 3.6p. If the shares hold above 2.5p, a move up toward 5.5p is reasonable by the end of next month.
- WeCap – Has rallied from below 1p in June to 2.7p without retesting the moving averages. The channel floor sits near 2.5–2.6p. Above that, expect at least 3.5p plus by the end of next month, possibly helped by news.
Summary and Key Watch Points
- Many markets are flirting with the 50 day moving average and the neutral 50 RSI level. These are the pivot points that will tell us whether the current setup becomes a sustained advance or a pause and retest.
- Indices to watch closely: FTSE 100 near 9700, DAX capped at roughly 24,400, Dow aiming for about 48,200.
- Crypto needs clean daily closes through the resistance levels listed to open the next leg up. Bitcoin above 116 and Ethereum through the 50 day would be constructive.
- Bullish scenarios for each stock are conditional on holding the identified support zones. Gaps that have been held are meaningful, but a failure to hold the 50 and 200 day lines would require a reassessment.
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.
