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, Blencowe, Cloudbreak, GCM, Great Western, Marston’s, Sosander, Tooru, Valereum, and WeCap.
Markets are treading water in several places and showing cracks in others. A handful of indices and assets are clinging to short-term moving averages while momentum indicators hint at either a recovery or another leg down. Below I walk through the key charts I’m watching and the levels that matter over the coming weeks.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Equities
FTSE 100
The index is parked roughly halfway between recent resistance around 9,590 and the channel floor at about 9,450. It remains above the 50-day moving average near 9,523, which is constructive, but a clean break above 9,600 looks necessary before dreaming of an end-of-year push toward 10,000.
On the downside, key support sits at October’s level near 9,276, and a decisive end-of-day close below the channel floor at 9,450 would open the door to further weakness. The RSI is not helping at the moment — it’s flirting with a reading that can precede another downside leg.
DAX
The DAX remains messy. It has failed to reclaim the 200-day moving average around 23,475, and until there is a daily close back above that, a run to the 50-day near 24,000 seems unlikely. Instead, the more probable path is a drift toward the April gap floor around 23,226–22,600 in the coming days.
Dow Jones
The Dow looks more like the FTSE than the DAX — a choppy ride but still inside the rising trend channel that began in June. The channel floor sits around 45,700. A break back above the 50-day moving average could lift prices toward resistance near 47,400, possibly as a pre-Thanksgiving bounce. Keep an eye on the RSI, which sits below neutral and leaves room for a failure at the 50-day and a move back to September support at 44,900.
Crypto
Bitcoin
Bitcoin has tested the downside targets identified earlier and even overshot toward the low 80,000s. A useful sign would be an end-of-day close back above the recent intraday resistance near 89,000. Without that, a renewed leg lower toward about 76,000 — the rising trend channel from last summer — remains a logical next stop.
The RSI is near the low 30s, close to oversold. That can produce a short-term bounce, but the price action so far looks like an intermediate recovery rather than a market that has found a durable floor. Immediate upside to watch is about 93,000.
Ethereum
Ethereum is still soft. It got back up to roughly 2,980 but could not clear the psychologically important 3,000 level — and that 2,980 area has flipped from earlier support to resistance.
If sellers reassert, look for support near 2,622 and, in a worse case, the July support region near 2,400.
Commodities
Gold
Gold is one of the better behaved markets. It is finding support above a rising 50-day moving average and has put in a double rebound off the 50 level on the RSI. Near-term resistance sits around 4,245, with a stretch target toward 4,600 by year-end if momentum holds.
If the 50-day gives way, the next significant support is around 3,830, which was the initial October support area.
Small Caps
Several smaller stocks show interesting chart patterns and settable targets. These are higher-risk setups, so monitor volume and daily closes around the moving averages before committing.
- Amazing AI — The shares are holding up despite an RNS that caused volatility. They bounced from just below 0.2p. Expect range-trading between roughly 0.25p and 0.4p unless a clear breakout occurs.
- Blencowe — A rising trend channel since April points to a top near 11p. The 50-day sits around 6.7p. RSI has shown a useful 50 rebound, which has supported gains since September.
- Cloudbreak — The floor of the channel is just under 0.80p. Staying above that improves the odds of a move toward about 1.60p by the end of January. Caution: an end-of-day close above the 50-day moving average is a cleaner entry signal.
- GCM Resources — A rising channel in place since February–March, with a channel floor near 4.75p. If the pattern holds, the top could reach around 9p by the end of January.
- Great Western Mining — Frequently associated with fundraising activity, the chart has bounced off the floor of a falling channel. Initial upside target is near 1.5p at the 200-day moving average, and a stretch target around 2p by the end of January.
- Marston’s — Showing no signs of hospitality sector weakness on the chart. It has cleared to new highs, with the top of the channel around 70p. Remaining above the 52–53p area is constructive into the seasonal trading period.
- Sosander — The shares have broken through a rising 200-day line and topped near 8.75p. The 50-day sits close to 6p. A near-term target is in the 8.5–9p zone while above the 50-day.
- Tooru — The chart is bullish: a bounce above a rising 50-day and a rising 200-day points to an impending golden cross. A confirmed daily close above about 0.26p would make a move to 0.40p a realistic near-term objective. The 50-day sits just under 0.21p.
- Valereum — Following a breakout through a rising 50-day after bullish divergence, the shares are now meeting the falling 200-day near 8p. An end-of-day close above 8p opens a target as high as 14p in the short term, while a gap support near 6.2p should be watched closely.
- WeCap — After heavy selling pressure and broker reshuffles, the shares are holding above the 50-day near 2.6p. A technical target sits around 4.25p, which could be reached by the end of next month if the last of the selling dries up.
Practical checklist for traders and investors
- Watch daily closes relative to the 50-day and 200-day moving averages — they matter for momentum and trend confirmation.
- Use the channel floors and tops as immediate support and resistance levels to manage stops and targets.
- Let the RSI give context. Near-30 readings can spark bounces, but they do not guarantee a durable bottom.
- For small caps, wait for an end-of-day close above the 50-day on any breakout to reduce the risk of false moves.
- Be prepared for a mixed market where some assets rally while others roll over; position sizing and stop discipline are essential.
Bottom line
Several major indices are stuck between important moving averages and trend lines, and momentum looks fragile in places. Bitcoin and Ethereum need specific closes above recent intraday resistances to avoid deeper pullbacks. Gold remains a constructive exception, trading above its rising 50-day. Smaller stocks offer clear technical targets, but they come with
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.
