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, ACG, Avacta, Artemis, Blencowe, Catenai, Empyrean, Fragrant Prosperity, Firering, Orcadian, Tap, Volex.
Major indices are sitting on or just above essential trend lines, which gives scope for a festive-season leg higher, while a handful of names on the small-cap boards are showing real breakout characteristics. The theme today is continuation: stay above key moving averages and trend floors, and the upside remains the path of least resistance.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
FTSE 100
The FTSE is perched near the top of a rising trend channel that began in June. Key levels to watch:
- Best-case target: 10,100 if momentum holds through the rising October channel.
- Key support on a close: 9,860 — a break below that risks a test of the October channel floor near 9,740.
- Near-term dip that would be healthy: a pull into the 9,800 zone (last resistance around 9,770–9,780).
In short: still bullish while price sits inside the rising channel. A modest pullback wouldn’t be disastrous and could set up a Christmas rally.
DAX
The DAX looks like it’s playing catch-up after gapping through an October resistance line. The close above that line is a positive technical signal.
- Near-term target: a retest of record highs around 24,800 while price remains above yesterday’s resistance at 24,100.
- Downside risk: a test of the floor of the April rising trend channel, which sits around the 50-day moving average near 24,000.
Buying opportunities presented themselves around 24,450 during the breakout — classic momentum behaviour.
Dow Jones
The Dow has been helped by positive headlines and remains inside a higher channel.
- Channel top: 48,400 is the next obvious target.
- Stretch target: an area around 49,500 if momentum accelerates.
- Key trend guard: stay above the 50-day line near 46,480; the RSI 50 rebound earlier in the week is a supporting signal.
Bitcoin and Ethereum
Cryptos have not kept pace with equities. Technicals are mixed and both need definitive confirmations to resume a meaningful uptrend.
- Bitcoin: still sitting near the floor of its rising channel from last December and below RSI 50. It needs to clear resistance in the $107,00 area to aim for 110,00–11,100 (50-day moving average). An end-of-day RSI close above 50 would be the clean green light for further upside.
- Ethereum: hugging the 200-day moving average (around 3,480). Above that the 50-day (3,964) becomes the logical intermediate target. The RSI needs to break July resistance around 47 to confirm a new leg higher. On the downside, the floor of the August falling channel sits near 3,040.
Gold
Gold has pushed through recent resistance and is showing strength above short-term hurdles.
- Near-term: cleared ~4,050 and the next stop would be ~4,160; a sustained close above that opens the November resistance line toward ~4,600.
- Realistic target: retesting highs around ~4,380 seen last month.
- Downside guard: the 50-day moving average near ~3,915.
Small caps and speculative picks
Several AIM and small-cap names are in momentum setups or showing recovery signs. These are higher-risk ideas so keep position sizing tight and use the stated support levels as stop-loss reference points.
ACG Metals
- Company raised financing (reported at roughly $15m), which took a real weight off the story.
- Shares are above a rising trend channel; I’m looking toward the top of the channel near £14 by the end of January while price remains above the channel floor and the 50-day line.
- Near-term support: keep an eye on £10.
Avacta
- Chart-based recovery, edging up from lower levels. Support around 70p and a clear breakout through 75p would pave the way for the channel top near 90p by the end of next month.
- Worst-case: another sub-70p test if momentum fails.
Artemis
- Shares are charging for the top of a broadening triangle back to last November — targets near 0.65p and then 0.75p given the strength of the turnaround.
- Downside buffer: expect the 50-day line to hold; anything falling back toward 0.41p would be disappointing.
Blencowe
- Third target already hit just under 8p. Above that the chart suggests an ambitious new leg toward 11p by the end of next month.
- Underlying support comes from an uptrend in the RSI window and classic new-support-above-old-resistance behaviour.
Catenai
- Recent bull trap through 0.60p. If the shares can hold above the late-October peak (0.47p) then another attempt at 0.60p and a retest of the April resistance becomes feasible.
- Worst-case to watch is a retest of the 50-day line near 0.37–0.38p.
- RSI currently sitting above neutral 50, which keeps the bias preferable to the upside for now.
Empyrean
- Shares have failed many times in the past but are finally showing life — up another 25% on the day and heading toward the top of the rising channel near 0.17p.
- Clearing August resistance at 0.12p would be the acid test for a lasting move rather than a short-lived spike.
Fragrant Prosperity
- TR1 activity on the register today but the chart is constructive: through the 200-day line with rising 200 and 50 moving averages, putting the stock in a golden-cross build-up.
- Initial minimum target: 1p by the end of this month; medium-term target toward 1.4p by year end.
- Stop-loss: an end-of-day close back below the 50-day (0.7p) would invalidate the bullish thesis.
Firering Strategic
- News of a $1m debt settlement has helped. Shares are forming a rising channel with potential to reach 2.75p by the end of next month while holding above the 50-day near 1.8p.
- Channel floor near 1.6p acts as a nearer-term guardrail.
Orcadian Energy
- Looks ready for a fresh leg higher; initial target 16p and a more aggressive target 33p in time if momentum proves durable.
- A golden cross has already formed, which is an encouraging technical development.
- Keep an eye on the latest support around 13p.
Tap Global
- The 3p selling zone has repeatedly resisted the shares. We’ve bounced above the falling 200-day and are pushing the sharply rising 50-day.
- If the 3p seller has gone, the next targets are 3.12p and then 3.5p. A further stretch would be toward 5.5p into Christmas if momentum continues.
Volex
- Typically not the usual focus, but recent management appointments and a run through resistance look encouraging.
- Chart points to a move toward the top of the channel as high as £5 by the end of next month, assuming the market cap and momentum hold.
Risk management and practical takeaways
Technical trading is about probabilities, not certainties. Use the following checklist before committing capital:
- Confirm price is above the short-term moving average or trend floor mentioned for the trade.
- Look for RSI confirmation (an end-of-day close above 50 for momentum plays is a helpful signal).
- Size positions so a break back below the stated support does not destroy your portfolio. Treat these names as speculative and size accordingly.
- Have clear targets and stop-loss levels and stick to them unless the structure of the chart changes materially.
Markets continue to offer constructive setups across both major indices and individual small caps. The technical thread is consistent: keep an eye on moving averages, trend channel floors and RSI behaviour. As long as the charts hold, the upside remains the most probable path.
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.
