Zak Mir takes a charting look at some of the most closely followed small caps on the London Stock Exchange. Today’s charts are for the FTSE 100, DAX, Dow, Bitcoin, Ethereum, Gold, Ascent, Audioboom, East Star, Fusion Antibodies, Greatland, Phoenix Copper, Pensana, Tribal, and Transense.
Markets have taken on a distinctly upbeat tone. Major indices are breaking short-term resistance, cryptocurrencies are probing recovery levels, and commodity moves are adding fuel to bullish scenarios. The common thread is the 50-day moving average and the relative strength index (RSI, acting as the clearing house for the next leg of any move. Below is a concise, chart-focused read on the key instruments and small-cap names showing the most actionable setups.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Indices
FTSE 100
The FTSE looks comfortable above a recently broken resistance line, with a nominal pivot at 9,700. The immediate aim is a run back toward last month’s highs near 9,900, and the top of the rising trend channel sits near 10,000. Expect progress toward that area by the end of next month if momentum continues. Downside risk is anchored by the 50 day moving average around 9,626. RSI in the upper 50s supports the bullish case.
DAX
A clean break through the October resistance near 24,150 opens the road toward record highs around 24,600, with a longer term channel top closer to 26,300. The 50 day moving average, just under 24,000, is the key support to stay above for the uptrend to remain intact.
Dow
The Dow is rapidly approaching a year end target near 49,000. Support has been steady above a rising 50 day line and price has shown two RSI rebounds above 50, a bullish leading indicator. If momentum holds, a projection toward 51,300 is plausible by the end of next month. The bullish view breaks if the index drops below the 50 day moving average around 47,000.
Cryptocurrencies
Bitcoin
Bitcoin has pushed above a resistance area in the low 90,000s, with an initial hurdle at the old support near 93,000. A decisive reclaim of 94,000 to 95,000 would clear the way to the 50 day moving average around 97,500 and then psychological resistance near 100,000. On the downside, the April uptrend sits near 88,000, and the lower channel floor around 81,400 would be the worst case. Note that RSI remains below the neutral 50 level, so confirmation is still needed.
Ethereum
Ethereum has regained the 3,000 area and is fighting to stay above the 50 day moving average at about 3,306. Above that, the 200 day average at 3,557 is the next technical target. Dips toward the 3,000 zone look like buying opportunities while RSI sits comfortably above 50.
Commodities
Gold
Gold gapped higher through a sticky resistance near 4,260, which is a strong bullish signal. With the gap cleared, the top of the October trend channel suggests a stretch target near 4,600 by the end of next month. Support to protect that view is the floor of the latest channel and the 50 day moving average near 4,107.
Selected Small Caps and Mid Caps
These names have actionable chart setups. Targets and key support levels are given for each, with a time horizon biased toward month end or the end of next month.
- Ascent, bouncing off the floor of a rising trend channel. End of day close above 0.46p would be constructive. Targets: 0.60p by month end, best case 07.0p next month. Support near 0.40p.
- Audioboom, edging higher after results. Key resistance zone between 600p and 700p. Expect to challenge 680p by month end, best case near 900p next month, provided price stays above 600p. Suggested stop area near 595p.
- East Star, momentum is building after cracking the old target. Current action near 3.75p, first objective 4p. Above that, look toward a fresh target around 5p. Stay long on the right side of 3.5p.
- Fusion Antibodies, resistance broken around 16.75p. Next target 24p in the coming weeks.
- Greatland, gapped up strongly, mirroring the gold move. Past the ambitious 460p target, the top of the rising channel points as high as 600p by the end of next month. Director buying has been notable.
- Phoenix Copper, bouncing from deeply oversold territory. A close above the recent resistance around 1.91p should expose 2.0p to 2.5p, the midpoint of a prior sharp decline.
- Pensana, attempting to recover from the October sell off. Maintain exposure while price holds above the rising support near 95p to 100p. Near term targets: 109p initial, best case 115p and then the 50 day average.
- Tribal Group, low volume but steady. Riding a rising trend channel and the top of that channel sits near 82p. Keep position while above the rising 50 day line at about 63p.
- Transense, showing classic strength with rising 50 and 200 day lines. Price has cleared recent resistance near 127p and the channel top is around 154p. The setup includes an extended RSI rebound above 50, which adds conviction.
Practical Rules and Takeaways
- 50 day moving average is the clearest dividing line between constructive and vulnerable price action across multiple instruments.
- RSI above 50 on rebounds tends to be a reliable leading indicator for further upside.
- Watch for decisive breaks, not just probes, of resistance levels before assuming a new leg up.
- Manage risk by defining support levels and stop areas. For several small caps, support zones were highlighted above.
- Gaps and director buying can be catalysts, but confirm momentum with moving average alignment and RSI.
Markets are in an encouraging posture, but confirmation remains important. Holding above key moving averages and seeing continued RSI strength will justify stretching targets into the new year. More updates will be useful as these setups evolve.
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.
