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, Silver, Amigo, Ajax, Audioboom, European Metals, Ferrexpo, GS Chain, Gunsynd, Hydrogen Utopia, SolGold, Supply@ME Capital, Unicorn, and Valereum.
Global risk assets closed the week with a generally constructive tone. Major indices are tracking higher inside established rising channels, mid-term moving averages are rising, and relative strength indicators are mostly in supportive territory. That does not mean every chart is clean, but the technical backdrop is tilted toward further upside while key support levels hold.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Quick highlights
- FTSE 100 trading near 9,700 with support around 9,650–9,790 and a rising channel target near 10,000.
- DAX back above the 200-day line near 23,500, resistance at about 24,300, channel top nearer 26,000.
- Dow closing toward channel resistance near 48,800, 50-day support around 46,700.
- Bitcoin recovering from the mid-year uptrend tests, key levels to watch 87k, 93k, 94k, 102k (50-day).
- Gold and silver showing strength; silver broke to fresh highs with a channel targeting the high 50s to mid 60s.
Indices in focus
FTSE 100
The FTSE has rallied toward the top of a rising trend channel, with recent closes around 9,700. Short-term support sits near the 50-day moving average, roughly 9,553, and a more practical support zone around 9,650. Maintain the bullish view provided the market stays above those levels. A move to 10,000 is plausible into January while momentum indicators remain positive.
DAX
Reclaiming the 200-day moving average near 23,500 was a key technical step. Immediate resistance comes from a line around 24,300. Break above that opens a path toward the channel top near 26,000. RSI sitting close to neutral supports further upside, but a clean end-of-day close above the rising 50-day would be a reassuring confirmation.
Dow
The Dow is pressing higher inside a long rising trend channel from February with an upper boundary around 48,800. The 50-day is supporting around 46,700 and the June uptrend floor is a deeper support near 46,000. Momentum is warming up with RSI approaching the high 50s.
Crypto — Bitcoin and Ethereum
Bitcoin is staging a recovery after testing this year’s lower uptrend support. Beware that RSI remains below neutral in some readings, so conservative traders may want to wait for a break back above the April–May support zone near 93k–94k and then the 50-day (~102k) to confirm renewed strength.
Ethereum is less decisive around the 3,000 mark. A clean end-of-day close above roughly 3,100 would open the way toward the 50 and 200-day average area near 3,500. The fact that RSI has already cleared an earlier resistance line is a positive technical sign.
Gold and silver
Gold is bumping against a resistance projection just under 4,180 and a successful close above that would put 4,600 back on the table as a one-year projection. Silver has been the standout, breaking to a new high and progressing inside a rising channel from early October. Short-term targets point into the high 50s with a higher-line projection toward the mid 60s.
Small Cap
Focus is on actionable chart patterns: breakouts, gap island reversals, rising 50-day/200-day moving averages and RSI 50 rebounds. Below are names showing clear technical setups and the levels to watch.
Amigo
RSI support around the 50 area has appeared and recent momentum suggests a breakout above the mid-single penny area could target 0.83p. This is a high-risk, speculative situation with structural and fundamental questions outstanding.
Ajax
Already hit the first target above 7.25p. The next resistance projection sits in the 12–13p area, potentially within a month if the re-rate continues.
Audioboom
Following legal clarity around related matters, the stock has cleared a broken resistance near 610p. While a persistent seller would be a headwind, holding above 600p makes a push toward £9 plausible.
European Metals
Early October buying and an RSI 50-plus rebound preceded last week’s strength. With the situation improved since March, a best-case technical target is at least 24p.
Ferrexpo
Considered a proxy play for Russia-Ukraine exposure. The chart shows a rising consolidation and a gap above the 200-day moving average. Recent support around 68p holds; a move to the low 90s is possible while that level remains intact.
GS Chain
Gapped through resistance near 0.38p and targeting older April resistance around 0.8p. The 200-day was broken to the upside and the 50-day is rising — a classic re-acceleration pattern.
Gunsynd
Recent closing action above the 50-day moving average looks constructive. The share price is moving toward the top of a broadening triangle with targets around 0.21–0.22.
Hydrogen Utopia
Consolidated above a rising 50-day average and produced multiple RSI 50 rebounds. A gap through November resistance near 2.6p points to an initial target of 5p. Beyond that, the next meaningful resistance resides between 10–12p.
SolGold
Pre-announcement positioning created an unfilled gap to the upside. If momentum continues the 2017 resistance line near 35p becomes a longer-term target, with nearer-term resistance around 26p.
Supply@ME Capital
After moving through a rising 50-day, the chart suggests a run toward the top of the range near 0.008 if the breakout holds. High volatility and corporate risk remain factors.
Unicorn
Bear-trap gap reversal and an extended RSI 50 rebound give this a strong technical look. A clear break above the 200-day near 4.4p sets an ambitious target toward 11p.
Valereum
Gapped in October and found support above a rising 50-day. The chart has already met early targets with higher levels in view while the stock holds above 10p.
Practical rules to trade these setups
- Watch for clean end-of-day closes above broken resistance or moving averages before committing.
- Use recent support levels as stop areas — the rising 50-day and clear horizontal zones are useful references.
- RSI 50 rebounds can be a leading signal for renewed upside. Treat them as confirmation, not the whole story.
- Keep position sizes small on speculative bulletin board names and expect higher volatility.
Final thought
Technically, the global picture is biased to the upside while moving averages are rising and many individual charts are showing clean breakouts or constructive reversals. Respect the key support levels and use end-of-day confirmation to avoid false breakouts. Expect individual small caps to remain noisy; the setups with clear gaps, rising 50 and 200-day lines and RSI 50 support offer the most compelling risk-reward opportunities.
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.
