Zak Mir takes a charting look at some of the most closely followed small caps on the London Stock Exchange. Today’s charts are the FTSE 100, DAX, Dow, Bitcoin, Ethereum, Gold, WTI Crude Oil, Acuity, Critical Metals, Capita, Delta Gold, Energy B, Eurasia, GreenX, Genincode, Gunsynd, Huddled, Hardide, Medpal, Northern Bear, Rockhopper.
Among individual shares, the picture is much more selective. Critical Metals continues to deliver an exceptional rally, while several smaller companies show the setup I favour: support above a rising 50-day moving average, preferably with the relative strength index above 50.
As always, do your own research and treat these as chart-based observations rather than hard recommendations
Equity Indices: Looking for Support Before a Seasonal Rally
FTSE 100: Can 10,500 Provide the Springboard?
The FTSE 100 is trying to remain above its broken July resistance line, around 10,670, but has slipped beneath its falling 50-day moving average. The small consolation is that the relative strength index, or RSI, is still just above its neutral 50 level.
That leaves the index in something of a holding pattern ahead of the Budget. While it remains below the 50-day line, the obvious downside reference is 10,500, where the 200-day moving average and the uptrend line from March come into play.
A dip towards that area followed by a rebound would fit one of my favourite seasonal ideas: buying around Bonfire Night and selling around Valentine’s Day. Whether that works this time remains to be seen, but 10,500 would be a useful place for the market to find its feet.
- Preferred support: 10,500.
- Deeper downside risk: 10,250, around the resistance established after May.
- Upside confirmation: a break above 10,800, opening the possibility of 11,000 by the end of November.
DAX: Repeated RSI Failures Are a Warning
The DAX looks slightly weaker than the FTSE. Its 50-day moving average is falling, and the 200-day line is flattening, suggesting another test of longer-term support.
The October support area around 24,800 is the first important reference. Below that, 24,000 comes into focus. Ideally, the 200-day moving average will contain the weakness.
What particularly concerns me is the pair of RSI failures in the mid-50s. Momentum repeatedly failing there can be an early warning of further downside. For a more constructive picture, the index needs to clear its 50-day moving average around 25,600, together with the September resistance line.
One possible scenario is a final bout of politically driven weakness ahead of the US midterms, followed by a recovery around November 4 or 5. That is a possibility rather than something to rely on; the chart still needs to confirm it.
Dow: Back Below the 50-Day Line
The Dow managed a rather odd two-day close above its falling 50-day moving average before slipping back underneath it. That line, at approximately 52,320, is now the immediate hurdle.
Below it, the floor of the rising trend channel points towards 51,000. A more extended decline could reach 50,500 and the 200-day moving average. Once again, the hope is that the longer-term average marks the worst of the pullback.
The RSI remains in the low 50s, so momentum has not deteriorated decisively yet. Nevertheless, the failed recovery above the 50-day line leaves the burden of proof with the bulls.
Bitcoin and Ethereum: Broken Support Raises the Stakes
Bitcoin: Below 82,000, the Risk Is 75,000
Bitcoin has retained much of its rally since August, but the immediate picture is struggling. The 50-day moving average near 81,600 is blocking progress, and a gap down through former resistance is a distinctly negative development.
While Bitcoin remains below 82,000, the risk is a move towards the 75,000 area. Ideally, that would be enough to contain the correction.
Momentum supports the cautious interpretation. The RSI has broken its own rising trend line around 45 and is now near 42, suggesting a move towards the lower end of the price range.
Ethereum: Already Testing the Lower Boundary
Ethereum has been a few days ahead of Bitcoin in this decline, making it a useful leading indication of the pressure across cryptocurrencies.
It has already slipped beneath the range floor at 2,360. Below that, the next important reference is 2,152, around the 200-day moving average, potentially before the end of October.
A recovery above 2,360 would brighten the immediate outlook. To get properly back into business, however, Ethereum needs to reclaim its 50-day moving average around 2,540.
Gold and WTI Crude Oil: Moving in Opposite Directions
Gold: The 3,900 Area Is Critical
Gold has suffered a proper rug pull. The broader impression is of investors selling several major assets at once, possibly raising cash to offset losses elsewhere, including AI-related positions. That is a possible explanation, not something the chart itself can prove.
The technical damage is clearer. Gold broke down from its triangle through support around 4,110, opening the way to a sub-4,000 move that has now arrived.
Previous support sits around 3,980 and extends towards 3,940. The bigger concern is sustained trading below 3,900, which represents roughly a year’s support. There is very little obvious chart support between 3,900 and 3,500, an uncomfortable prospect for both gold and gold miners.
To escape the immediate danger, gold needs to recover above 4,070 to 4,080, the initial October support area. Both the 50-day and 200-day moving averages are falling in parallel, which is another reason not to assume that every dip will produce a lasting rebound.
WTI Crude Oil: Still Uncomfortable for the Bears
Oil is going the other way. The market appears to be pricing in the possibility of action by President Trump before the midterms, although whether that action materialises is a separate question.
The last swing low around $95 remains the key downside reference. Above it, the working upside objective remains $110, followed by $120 if the advance extends. Those are chart objectives, not necessarily a ceiling on an extreme move.
The longer crude holds above $97, the floor of the September gap, the more awkward the setup becomes for the bears. An RSI rebound from above 50 has already helped the advance. The next test is whether price can remain above $102, the initial October resistance.
Smaller-Cap Shares to Watch
A recurring theme in these charts is the combination of price support above a rising moving average and an RSI rebound above 50. The relative strength index measures price momentum; here, its behaviour around 50 helps distinguish constructive pullbacks from rallies that are running out of steam.
- Acuity: A U-Shaped Recovery with 2.2p in View: Acuity has formed a U-shaped reversal, helped by an unfilled upside gap on October 14. Support is now appearing at higher levels, above 1.5p. While that holds, the objective is the old 2025 resistance around 2.2p, potentially by the end of November. A golden cross is already in place, while support is comfortably above both the 50-day moving average and the neutral RSI level. A move back below 1.5p would suggest a retest of 1.3p before another attempt higher. For now, the rounded recovery and bull-flag structure look as though they mean business.
- Critical Metals: An Exceptional Rally Approaches 90p: Critical Metals has been one of the strongest recent chart calls, although the scale of the advance has exceeded even an optimistic starting point. The early clue came in September, when support appeared above a rising 50-day moving average. Strong candles repeatedly opened near their lows and closed near their highs, suggesting accumulation while the shares were still below 10p. They have since moved above 80p. The next objective is the two-year resistance area around 90p, potentially in the coming days. Above that, the more ambitious scenario points towards 120p to 130p by the end of November. Ideally, the shares hold above the previous peak at 68p. A retreat below the recent resistance area around 60p would delay the upside case.
- Capita: A Punchy Setup Above 275p: Capita is larger than the companies that usually dominate this rundown, but its chart deserves attention. An uptrend line from July comes in around 275p. Above that, the initial expectation is a retest of 310p, with scope for 380p by the end of November. That is a punchy target, but the bear-trap rebound earlier in October gives the setup some substance.
- Delta Gold: The Bull Run Looks Vulnerable: Whatever claims may be circulating about short selling, Delta Gold’s chart needs to stand on its own merits. The shares have fallen out of their range and are testing the 200-day moving average around 105p. Holding that level could allow a recovery towards the falling 50-day moving average near 129p. Below 105p, a retest of April support around 90p becomes the more likely scenario. The concern is the repeated failure beneath a falling 50-day line, the opposite of the setup I prefer. Several RSI failures below neutral 50 add to the warning. The longer those conditions persist, the harder it becomes to argue that the previous bull run is still intact.
- Energy B: Strength After a Fundraise: Energy B brings the Gatwick Gusher story back into focus. There is not a great deal of chart history to work with, but two features stand out: the unfilled upside gap from June and the break higher at the end of the week alongside a fundraise. A share price rising after a fundraise is an encouraging sign. Above the 50-day moving average around 12p, the top of the channel suggests a possible move towards 28p by the end of November.The chart does not tell us what catalyst would deliver that move. It does, however, make the shares worth keeping on the watchlist.
- Eurasia: A Better Quality Bounce: Eurasia has a habit of seeing rallies sold into, and the latest advance has not been entirely smooth. This time, however, the shares finished the week bouncing above a rising 50-day moving average. That is one of the stronger setups in this approach, especially alongside an RSI rebound from above 50. While the shares remain above the moving average around 2.2p, another attempt at 3.6p, the top of the triangle from March, remains in play.
- GreenX: Pressure Building Beneath 56p: GreenX has promised plenty over recent months and years. The latest setup offers several constructive ingredients: support above a rising 200-day moving average, two RSI rebounds around 50, and encouraging candles above a rising 50-day line. The immediate requirement is a proper break through recent resistance at 56p. That would put 65p in focus over the next week or two, with scope for more if the rising trend continues.
- Genincode: Confirmation Needed After Too Many False Starts: Genincode has been a frustrating chart, with previous one-day spikes quickly sold into. There is a broadening triangle whose upper boundary reaches approximately 1.5p, but the more immediate ambition is simply to reach the top of the gap around 0.87p. The RSI needs to stay above 50. A more cautious approach would also require an end-of-day close above the 50-day moving average before assuming that the bear phase has finished.
- Gunsynd: A Technical Break Amid Corporate Intrigue: Gunsynd is attempting to move from being an investment company towards becoming an operating company. Technically, it has broken through the 200-day moving average around 0.10p, with an RSI rebound around 50 supporting the move. That opens the possibility of another attempt at 0.14p over the next two to four weeks. The corporate backdrop remains lively. The company has acknowledged recent share-price movements and commentary on social media and bulletin boards concerning the requisitioning of general meetings. That makes this a situation where the chart and the news flow both need attention.
- Huddled: The Rising 50-Day Line Remains the Guide: Huddled has been a favoured near-term riser since breaking its resistance line around 0.4p and reclaiming the 50-day moving average. The shares have continued rising above that rising average. While recent support around 0.75p holds, the objective remains 1.3p by the end of November.
- Hardide: Holding the Gap Is the Important Test: Hardide continues to break higher, with an encouraging fundamental backdrop accompanying the chart strength. The gap through recent resistance at 109 is the important feature. Holding above that breakout level keeps a move towards 150 or higher in play by the end of November. The shares are also rising above a rising 50-day moving average, while this week’s gap remains intact.
- Medpal: The Sellers May Be Running Out: Medpal has bounced above its 200-day moving average, offering some hope that the selling pressure is easing. Two further signals would improve the case: an RSI recovery above 50 and a convincing end-of-day close above the still-rising 50-day moving average at 5.55p. If those arrive, the longer-standing 10p objective remains relevant, although the original end-October timing now looks ambitious. A recovery towards 8p would represent useful progress if the sellers have indeed finished.
- Northern Bear: Rising Against a Dead Cross: Northern Bear has broken a trend line and ended the week with decent candles. A trend-line break alone would not be enough to make the case, but the shares are also rising against a dead cross, which can be a constructive sign. While the old September support around 107p holds, the chart points towards 120p by the end of November.
- Rockhopper: A Rounded Recovery with Oil Support: Rockhopper has been through a difficult spell, but a U-shaped bull flag is now taking shape and the RSI has moved above 50. Above recent support at 55p, the first objective is the 50-day moving average around 65p over the next week or two. The more optimistic scenario is a move towards the top of the gap at 76p by the end of November, potentially helped by the stronger oil price.
The Common Thread: Confirmation Matters
The contrast across these charts is striking. Many major assets are struggling beneath falling moving averages, while selected smaller shares are finding support above rising ones.
That distinction matters more than an attractive target on its own. A rising 50-day average, an RSI holding above 50 and an unfilled upside gap can reinforce a bullish case. Repeated failures beneath a falling average, particularly alongside weak momentum, suggest that caution is still warranted.
For the broader market, the immediate question is whether the approaching seasonal window brings a useful low. For individual shares, the better opportunities remain those where the price action is already doing the confirming.
Important: This material is for information only and is not investment advice. Independently research and verify information before relying on it, and seek professional financial advice where appropriate. Vox Markets is not regulated under UK financial services law.
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.
