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, Buccaneer, Critical Minerals, EARNZ, KEFI, Prospex, Panther, Renalytix, Rc365, Serval.
Markets are trying to find their feet after recent weakness, with several major indices now sitting around important chart support. The key question is whether these levels produce the expected rebounds or whether the downside has another leg to run.
Bitcoin and selected smaller shares have a more constructive tone, while crude oil remains the standout momentum market. Gold is holding its rising channel, but has some overhead technical resistance to overcome.
As always, do your own research and treat these as chart-based observations rather than hard recommendationsend-of-day
FTSE 100: Is the Market at the Floor?
The FTSE 100 appears to be testing the floor of a rising trend channel, albeit one that is wider than the previous formation. The 10,600 area had already stood out as potential support, having acted as support during the July advance.
Provided the index can hold above that zone, the initial rebound target is the 50-day moving average at 10,738. The more optimistic upside target is the late July resistance line at 10,850.
On the other hand, failure to hold Thursday’s low at 10,594 would leave the market vulnerable to a move towards July support and the 200-day moving average around 10,400. That represents roughly another 200 points of downside.
- Near-term support: 10,594 and 10,600
- Initial rebound target: 10,738, the 50-day moving average
- Best upside target: 10,850
- Major downside support: 10,400, near the 200-day moving average
DAX: Support at the Base of the Channel
The DAX is also attempting to stabilise at the lower boundary of a channel stretching back to late February and early March. The exact placement of the channel floor is still open to interpretation, but the key support zone comes in around 25,400.
If that level holds, the first upside objective is the 50-day moving average at 25,700. A further sell-off would expose the 200-day moving average at 24,700.
Dow: More Downside Could Be Required
The Dow has broken down from its previous channel structure. It is possible that a wider channel is now the more relevant pattern, but that remains unconfirmed. For now, the market needs to establish support following the break below the 50-day moving average just under 53,000.
The late July support area at 51,500 is the obvious downside destination. Resistance is now provided by the line from last month, currently around 53,600.
The RSI has broken its former uptrend line around the 45 level and is not yet oversold. That leaves room for the Dow to fall further before a more meaningful recovery becomes likely. For a useful overview of how momentum indicators are typically interpreted, see this guide to the Relative Strength Index.
- Resistance: 53,600
- Key support: 51,500
- Technical concern: RSI remains weak without being oversold
Bitcoin: Consolidation Still Favours the Upside
Bitcoin has been comparatively quiet, consolidating the sharp move seen last month. The current trading range is broadly $75,000 to $82,000, and price action has respected those boundaries.
A rising trend channel from the end of last month gives an initial upside target near $83,000. A stronger move could see Bitcoin head towards $94,000 by the end of next month, which would bring it into contact with the top of the broadening triangle in place since February.
The RSI is bouncing above the neutral 50 level, which is a positive sign for the near-term technical picture.
- Range support: $75,000
- Range resistance: $82,000
- Channel target: $83,000
- Potential wider target: $94,000
Ethereum: A Narrow Range Before the Next Move
Ethereum is trapped in a relatively tight range between $2,360 and $2,570. A break higher would put the top of the rising trend channel near $2,900 into play.
Should the range break down instead, the former May resistance area and the 50-day moving average around $2,150 would be the favoured destination.
Gold: Dips Towards the 50-Day Line Remain Attractive
Gold is still attempting to remain inside a rising trend channel, although the precise shape of that channel is not entirely straightforward. The more useful support reference is the channel base from June, which aligns with the rising 50-day moving average at $4,268.
Any retreat towards that rising 50-day line would be regarded as a buying opportunity from a chart perspective. On the upside, the 200-day moving average around $4,538 is likely to limit progress initially.
- Potential buying support: $4,268
- Initial upside barrier: $4,538
WTI Crude Oil: Momentum Points Towards $115
Crude oil has caught plenty of people out on the latest advance, even though the rising trend channel had already pointed to a target in the $101 to $102 region. The market exceeded that target, reaching $104.
The chart now suggests the possibility of a fresh upside leg. As long as crude remains above the recent breakout zone in the low $90s, there is scope for a move towards $115. The crucial condition is sustained price action above $100.
- Breakout support: $93
- Confirmation level: sustained trading above $100
- Potential upside target: $115
Small-Cap Share Charts to Watch
- Buccaneer: Triangle Breakout, But Expect Selling Into Strength: Buccaneer has endured a difficult falling-channel phase, but the shares are now breaking out of the triangle pattern that has dominated the chart since last autumn. A retest of 0.012p is possible following the move through 0.0101p. The broader best-case target is around 0.017p by year end. The caveat is familiar: upside spikes have repeatedly attracted sellers, and that could happen again. Near-term range support lies at 0.009p.
- Critical Minerals: Improving Above the 50-Day Average: Critical Minerals has delivered a decent push above its falling 50-day moving average, which is a constructive development. The next important target is the 200-day moving average at 10p. On a stronger move, the rising trend channel points towards 15p by the end of next month. The preferred setup is for the shares to remain above recently broken resistance at 8p.
- EARNZ: Momentum Building Above 3.12p: EARNZ has bounced above a now-rising 50-day moving average, suggesting that momentum is beginning to build. While the shares hold above recently broken resistance at 3.12p, the chart points towards 5p by the end of next month.
- KEFI: Recovery Needs a Close Above 0.8p: KEFI has provided an update suggesting that operations are gradually getting back to normal, but the share price has not yet produced the expected recovery. A move towards the gap at 0.95p had looked possible, yet 0.8p has so far acted as the ceiling. An end-of-day close back above 0.8p is needed to provide greater confidence that a lasting turnaround is underway.
- Prospex: Rising Like a Homesick Angel: Prospex has been one of the stronger recent chart calls and is moving rapidly higher. The earlier target at 5.25p has been exceeded, leaving the projected resistance line from 2023 as the next major reference point. That opens the way towards 10p by the end of next month, particularly if the shares can remain above 6p.
- Panther: A Strong Rebound From Channel Support: Panther has bounced from the floor of its rising trend channel and has recovered well after trading below the rising 50-day moving average. The chart is looking strong, with the top of the channel indicating a possible move towards 216p by the end of November.
- Renalytix: A Saucer-Shaped Reversal Taking Shape: Renalytix has already posted a decent rebound. The chart has a saucer-shaped reversal appearance, with a September gap higher mirroring the February gap down. As long as the shares remain above the top of the recent gap around 5.25p, the target is 7.12p by the end of next month.
- RC365: First Target Reached, Next Leg Points Higher: RC365 has just about reached the initial target near 3.75p. The next potential move is towards the top of the rising trend channel at 5.3p by the end of next month. For that bullish scenario to remain intact, the shares should stay above 3p.
- Serval: Bull Flag and Golden Cross Support the Chart: Serval is gaining traction within a bull flag consolidation pattern. Both the 50-day and 200-day moving averages are rising, with a golden cross formation strengthening the technical case. That setup suggests that the top of the channel around 47p is the minimum target by the end of next month, especially while the shares hold above 30p. A golden cross is generally used by chartists as a sign that medium-term momentum is improving.
Levels That Matter Most
The major indices are at a point where support needs to prove itself. For the FTSE 100 and DAX, the lower boundaries of their respective channels are the immediate focus. The Dow remains the more cautious setup, with 51,500 still looking like the key support target.
Bitcoin remains constructive while it consolidates above $75,000, gold retains buy-on-dips potential towards its rising 50-day line, and crude oil stays in a strong momentum phase above $93. In the small-cap space, the cleaner technical opportunities are coming from shares that have reclaimed moving averages, broken chart resistance, or are holding above former resistance 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.
