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, Ajax, Ascent, Blencowe, Cyanconnode, European Metals, Hot Rocks, Jersey Oil & Gas, Kodal, SolGold, Upland, Valereum, and WeCap.
This is a chart-first read of where the major indices, cryptocurrencies, gold and a selection of smaller UK-listed stocks are sitting right now. The common themes are respect for moving averages (50-day and 200-day), price action inside established channels, and a handful of clear support and resistance levels to trade around. Below I outline the key levels, bullish/bearish scenarios and sensible timeframes to watch.
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 finding its feet at and above the 50-day moving average (around 9,533). Recent strength has cleared near-term resistance at 9,590. If the market stays above the 50-day on an end-of-day close the path higher looks towards 9,750 and, optimistically, the top of the channel near 9,950 by the end of December.
Bear-case: a retest of the channel floor around 9,460. The worst realistic downside is the October support zone around 9,276, but the market has behaved within this rising channel since June and the higher-probability outcome is a move back to the upper channel.
DAX
The DAX is a bit jittery but it has reclaimed the 200-day moving average (roughly 23,400). Above that on a close basis there is scope to revisit recent November resistance near 24,400. On the downside, keep an eye on the rising-channel floor around 23,000 — a sustained break below that would be the clear negative signal.
Dow
The Dow mirrors the FTSE setup: a push above the rising 50-day (just under 46,700) with an upside target around 49,000 by the end of December. Current technicals are positive — both the 50 and 200-day lines are rising and the RSI has moved back above neutral (around 53). The immediate downside support is about 45,800.
Cryptocurrencies
Bitcoin
Price action is sluggish. Bitcoin tested near 89,000 but that spike did not produce convincing follow-through. There is a clear risk that if price cannot hold the sub-90,000 zone we could see another leg down towards 76,000 in the coming week or so.
The silver lining: momentum readings are oversold, which makes a dip-buy setup attractive for longer-term crypto believers — especially relative to last month’s peak near 126,000.
Ethereum
Ethereum is struggling with the old April support-turned-resistance around $3,000. Failure to clear $3,000 opens the door to retests of recent support at $2,622 and, worse case, the July area near $2,390. If it flips $3,000 convincingly, upside to roughly $3,250 becomes plausible. Watch the RSI resistance line — it’s still exerting influence.
Gold
Gold is the standout that has been defying gravity. The metal is comfortably above a rising 50-day moving average and is currently around the 4,000 level. Short-term targets are 4,240–4,250; a more bullish route would see 4,600 by the end of 2025 if momentum continues.
A firm, end-of-day close back below the 50-day would be the main risk signal and could push price back under 3,900 towards late-October support. For now, the price structure and a double RSI 50 rebound are constructive.
Selected Small Caps
Below are concise technical snapshots for a selection of stocks where chart action is currently providing clear tradeable levels.
Below are concise technical snapshots for a selection of stocks where chart action is currently providing clear tradeable levels.
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Ajax
Setup: Continuing to edge higher.
Key levels: initial target 7.2p; extended targets 12–13p by end of January. Support: channel floor 4.88p.
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Ascent
Setup: Recovery mode; shares testing the rising 50-day line. A close above that 50-day is required to confirm the next leg up.
Key levels: a close above the 50-day (around mid-40s in pence) would open a retest of prior resistance. Downside risk is limited while the stock stays above low single-digit pence support.
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Blencowe
Setup: V-shaped rebound from the channel floor and above the rising 50-day. Momentum readings (RSI) are supportive.
Key levels: targeting 11p in the coming days while holding recent support near 7p.
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Cyanconnode
Setup: After muted performance, we’re finally seeing upside pressure.
Key levels: immediate target ~9p (top of a broadening triangle); next resistance is the April gap around 10p, likely in early December. Maintain above broken resistance 7–7.5p.
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European Metals
Setup: Strong bounce off the rising 50-day; both 50 and 200-day lines are rising.
Key levels: support 11p (50-day); upside target 18p by end of next month.
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Hot Rocks Investments
Setup: Significant exposure to WeShop and other holdings not yet fully priced into the London market.
Key levels: rising trend channel with a conservative target of 3p by end of January, possibly earlier if the market re-rates the holding value.
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Jersey Oil & Gas
Setup: Slow, steady uptrend with a recent RSI 50 rebound.
Key levels: support 1.143p (50-day); channel top near 2.20p as an end-January objective.
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Kodal
Setup: Breaking a year-long downtrend and trading above the 200-day (0.32p).
Key levels: resistance near 0.34p is meaningful; a break higher could see 0.42–0.46p in the next month as a triangle plays out.
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SolGold
Setup: Accelerated move after a gap higher earlier in the month.
Key levels: short-term targets 18–19p; extended target 27p derived from the latest upper parallel.
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Upland
Setup: Gradual grind higher — close to clearing the next obvious resistance.
Key levels: near-term target 3.5p (likely in days); extended channel top 4.9p by the end of next month while above 3p support.
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Valereum
Setup: Strong reaction to news, bounces off the 200-day (around 7.8–8p) with a clear RSI 50 rebound.
Key levels: upside target 14p by end of next month, helped by an unfilled gap to the upside.
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WeCap
Setup: Volatile and headline-driven due to exposure to WeShop. Price action remains choppy while some holders lock in profits.
Key levels: the rising channel top is near 4p; keep the 50-day close around 2.66p as the line in the sand to remain bullish.
Technical checklist and trade notes
- Respect moving averages: The 50-day is an important short-to-medium trend filter; the 200-day marks longer-term regime shifts.
- Channels matter: Price reversion to the channel median or top is the higher-probability outcome when momentum is intact.
- RSI 50 rebounds: When RSI bounces off the 50 level alongside price holding key moving averages, setups tend to be cleaner and lower-risk.
- Use end-of-day closes: Confirm breaks or holds with daily closes to avoid whipsaws around key levels.
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.
