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, Eco (Atlantic), Fiinu, Guardian Metal, Hydrogen Utopia, Indus, Pebble Beach, Roadside, Sovereign Metals, UKOG, Vault, ValiRx.
The theme this week is rising trend channels holding support around the 50-day moving average, multiple RSI 50 rebounds and a handful of gap-ups that suggest a fresh leg higher could be starting in several names.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Below are the practical levels, scenarios and timeframes I’m watching for major indices, crypto and a selection of smaller UK stocks.
FTSE 100
The Footsie has finally done what we had hoped for: it has broken through November resistance and is trading comfortably above the rising 50-day moving average. That blue 50-day line sits around 9,640 and has provided multiple supports recently — a bullish sign. We’ve also now registered three separate RSI 50 rebounds, which historically can fuel extended rallies.
- Near-term support: 9,640 (50-day MA) and the uptrend line from June at 9,550.
- Immediate resistance to clear: 9,770 — a close above here keeps momentum intact.
- Upside targets: a run at the rising trend channel top and the psychological 10,000 level, possibly by month-end if momentum continues.
- Bearish scenario: an end-of-day close back below the 50-day MA would suggest another test of the channel floor around 9,550.
DAX
The DAX is more muted. It sits either side of a previous resistance line broken in October around 24,100. Without the same rate-cut impetus seen elsewhere, the German market needs to hold above its breakout area to press toward record highs.
- Support (rising): the 200-day line near 23,500.
- Near-term upside: head back toward recent highs and test the record area around 24,700.
- Broader target: a push toward 26,000 remains plausible into the new year if momentum persists.
Dow Jones
The Dow is carving out a higher trading range while sitting above its 50-day moving average. A bounce toward the upper channel remains the base case as long as the 50-day holds.
- 50-day moving average: around 47,100.
- Immediate target: channel top near 49,000.
- Stretch target: the red August resistance projection around 51,000 by late February would be optimistic but feasible.
- Downside test: channel floor from June sits near 46,500.
Cryptocurrencies
Bitcoin
Bitcoin is the more painful story right now. It has slipped below its 50-day moving average and suffered multiple RSI 50 failures — a textbook risk-off sign for the crypto complex.
- Near-term downside to watch: the October uptrend line around 81,000.
- Worst-case support: the April 2025 support zone around 74,000.
- Upside gate: a successful break above the October resistance at 91,000 would open the run toward the 50-day near 94,900.
Ethereum
Ethereum has been underperforming and trading on the wrong side of the psychologically important 30,000 level. RSI sits near 41, so the path of least resistance is lower unless it stabilises above the April uptrend line.
- Key support: the April uptrend around 2,820; a break risks a slide to November support near 2,622.
- Near-term upside target if it holds the uptrend: the 50-day moving average around 3,200.
Gold
Gold has broken above its recent November peak around 4,245 and looks constructive while staying above the uptrend line from October near 4,170. The next logical resistance projection carries the metal toward about 4,650.
- Important keeps: stay above the 50-day line (around 4,128) and the uptrend line from October.
- Upside projection: 4,650 by the end of next month if the breakout sustains.
Selected Small Caps
Several smaller names are showing classic breakout behaviour: break above 50-day or 200-day moving averages, RSI 50 rebounds and gap-ups. Below are the levels I’m tracking and what would change the trade idea.
Eco (Atlantic)
- Recent action: second attempt at the previous target near 25p.
- Immediate support: broken resistance around 21.12p.
- Stretch target above 25p: back toward the 2022 peak near 45p.
Fiinu (BANK)
- Technicals: solid break above both the 50- and 200-day moving averages.
- Near-term resistance: around 12p by month-end.
- Upside if momentum continues: retest August–September spike toward 20p.
- Key downside guard: avoid a fresh low below 8p.
Guardian Metals
- Performance: one of the standout stocks of the year, up nearly threefold.
- Critical levels: holding above £1.00 and an end-of-day close above the 50-day (£1.10) is constructive.
- Near target: low 120s pence by month-end while above the pound level.
Hydrogen Utopia
This name has been very stubborn against bears. Technicals look excellent: three RSI 50 rebounds in October and another strong leg higher after a gap fill through 3.1p.
- Immediate target: retest highs near 4p—potentially before month-end.
- Medium-term: if it clears 4p, a path to the upper parallel of the rising trend channel around 8.75p and even 12p in early 2026 becomes feasible.
Indus
- Structure: rising trend channel since last year; shares have cleared the 50-day.
- Near-term target: around 20p by the end of next month while staying above the 50-day (9.75p).
Pebble Group
- Pattern: wide, steep rising channel since late 2023 with a breakout to the upside.
- Key levels: rising 50-day near 16.5p and channel top toward 30p by the end of next month if the RSI and 50-day support hold.
Roadside Real Estate
- Progression: steady one-way move higher; old target near 68p reached.
- Next target: 90p potentially by the end of next month.
Sovereign Metals
- Trigger: a strong RNS and a bear-trap reversal saw a break above recent resistance at 27.75p.
- Targets: first the 50-day near 30p, then toward 37p and the channel top by month-end.
UKOG
Shares are showing a bounce off a rising 200-day moving average and a short gap remains to be filled.
- Immediate objective: gap fill at around 0.21p.
- Longer-term channel target: 0.26p, but this remains a higher-risk trade and not for the faint-hearted.
Vault Ventures
- Near-term target: first objective at approximately 1.25p, the top of a falling channel from September.
- Further upside would need a clear move above the 200-day line, around 1.75p.
ValiRx
ValiRx shows a string of RSI 50 rebounds and is poised near the 50-day line. The setup looks primed to break higher if it can close above the moving average.
- Important support: recent support near 0.3p.
- Targets: the 50-day and 200-day confluence levels around 0.51–0.52p by the end of the month if momentum continues.
What this means for traders
The common technical thread is simple: as long as indices and selected stocks remain above their 50-day moving averages and continue to print RSI 50 rebounds, the higher-probability outcome is more upside. Breaks back below those moving average anchors or failed RSI rebounds increase the chance of channel re-tests and deeper pullbacks.
Keep a tight eye on end-of-day closes around the 50-day lines for each instrument. Those closes often give the clearest signal as to whether a move will continue or roll over.
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.
