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, Amazing AI, Ampeak Energy, Atlantic Lithium, Eurasia, Georgina, Hot Rocks, Hydrogen Utopia, Ingenta, Pantheon, Roadside, WeCap, Westmount, Zenith.
Charts suggest a market still clinging to key moving averages. Some indices and commodities are stabilising around their 50‑day lines, while a few remain below longer‑term trends and need decisive closes to convince bulls. Below I run through the critical levels to watch on the FTSE 100, DAX and Dow, then cover crypto and gold before moving into a practical small‑cap watchlist with targets and risk points.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices
FTSE 100
The FTSE has found support around the 50‑day moving average. An end‑of‑day close back above the early November support at 95.74 would allow the recent sell‑off to be viewed as a bear‑trap rebound. The RSI needs to recover above neutral 50 (it’s around mid‑40s now) to strengthen the bull case. Worst case, the index may retest the June channel floor near 94.40, but while we sit above the 50‑day line the bias remains to the upside.
DAX
The DAX is the weaker of the three: still below the 200‑day moving average at about 23,400. A convincing end‑of‑day close back above the 200‑day would open the 50‑day and early‑November trading zone around 24,000. The downside gap from April leaves scope to fall toward ~22,600 as a worst case, so caution is warranted until the 200‑day is reclaimed.
Dow Jones
The Dow looks stabilised at lower levels, finding support near the early‑October lows around 45,800. A cleaner bullish view requires either an end‑of‑day close above the 50‑day line near 46,600 or an RSI back above 50 (currently around 40). If those happen, the path back into the prior channel becomes more plausible.
Crypto
Bitcoin
Bitcoin remains under pressure while it trades below the old May support at 93,000. If that level is reclaimed on an end‑of‑day close the initial rebound target is around 98,000–100,000. Failure to hold current levels risks a move to the March uptrend near 86,000, with a more painful test of the channel width pushing toward ~76,000 — close to the year‑to‑date low area.
Ethereum
Ethereum has stayed above the psychologically important 3,000 level and is sitting on a near‑term trendline around 2,970. Recent resistance sits near 3,250. On the downside, a drop toward the May resistance zone around 2,770–2,800 would be the nightmare scenario for bulls.
Gold
Gold is flirting with its 50‑day moving average and likely to test it soon; the chart currently places that 50‑day line near 39.64. While above the 50‑day, expect a retest of recent resistance around 4,200. A stronger case would push toward the November resistance projection near 4,600 by early next year. The RSI holding above 50 is a constructive sign for bulls.
Small‑cap watchlist
Here are practical, chart‑based notes on a selection of equities where price action is starting to make a case. Each entry highlights support, initial upside targets and the level that would undermine the trade idea.
- Amazing AI: Found a floor around 0.20 with resistance near 0.28. There was a short rebound after support held. Bottom‑fishing here is high risk but the company’s improved news may not justify prior falls.
- Ampeak Energy: Breaking above recent resistance around 3.1p – 3.95p with a near‑term aim at 4p. Needs another push to reach the top of the rising channel.
- Atlantic Lithium: In a mid‑move consolidation. Initial upside is about 11p, then a run toward old December resistance at 17–18p. Keep an eye on support around 10p.
- Eurasia: The 50‑day (around 3.42p) is starting to trend up. An end‑of‑day close above 4.3p would clear the path to around 6p in the following weeks.
- Georgina Energy: The stock has been sold into at rallies but keeps trying. A sustained move to 6.6p is a reasonable end‑of‑year target if buyers can hold momentum.
- Hot Rocks: Exposure to WeShop in the US is a tailwind. The stock trades in a rising channel with the upper parallel toward ~3p, while support sits near 1.2p.
- Hydronutopia: Broke above old resistance at 2.1p. Near term resistance around 2.7p; a weekly close above that could open a run to ~5p later in the year.
- Ingenta: Retested the initial target near £1.00. Above £1, the upper parallel of the rising channel points to ~£1.30 as a best‑case end‑of‑year target.
- Pantheon: A slow recovery with a rising channel base toward ~36p. The 50‑day moving average sits near 26p, which has acted as support.
- Roadside Real Estate: The rising trend channel targets ~66–68p by month‑end, with the upper parallel nearer 87p if momentum continues into January. Keep support around 55p in view.
- WeCap: Shares are up strongly (near +27% in recent moves) and have cleared short‑term resistance at ~3p. A revisit to 4p is likely; structurally the chart leaves room to test much higher levels if UK market liquidity improves.
- WeShop (NASDAQ): Exceptional moves seen recently (large intraday gains). This name is volatile and priced off US flows — use strict risk controls if trading it.
- Westmount Energy: Consolidation above the 50‑day and a gap through that line earlier this month. Target near 3.3p by year‑end, defined by the top of a triangle from 2023.
- Zenith Energy: First target around 4p reached; next objective is the top of a triangle near 6p. The 50‑day around 3.4p should remain as a support reference.
Key takeaways and risk management
Technicals still matter: the 50‑day and 200‑day moving averages are serving as clear decision points across markets. Watch for end‑of‑day closes above or below those lines — they tell you whether the path of least resistance has changed.
For each trade or market theme, define:
- Entry criteria (e.g. end‑of‑day close above a moving average or resistance).
- Initial target (the next structural resistance level).
- Stop or invalidation (support level that, if lost, changes the view).
Keeping those rules simple will help navigate the mix of stabilising indices, still‑fragile crypto, and the fast‑moving small caps covered above. More updates will follow as price action develops.
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.
