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, Alkemy, Cadence, Empyrean, Ingenta, IP Group, Incanthera, Jangada, MicroSalt, Panthera.
Markets remain indecisive across equities, crypto and gold. Short-term technical damage is visible in some major indices while small-cap stocks are showing a mixed bag of consolidations and breakout attempts. Below is a succinct, chart-focused read on the key indices, crypto moves, and selected small caps to watch, with clear levels and likely scenarios.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Market snapshot
Price action is reflecting a broader theme of rolling over in several markets. Where momentum breaks below key moving averages and mid-range RSI levels, downside targets come into focus. Conversely, sustained closes back above those moving averages would quickly re-open upside paths.
FTSE 100
The recent steep rising channel failed to hold and the market slipped below the support near 9,750. The next meaningful support area is around 9,640. As long as that level holds, a gradual recovery toward the 10,000 mark remains plausible by year end or early next year.
Worst-case near-term risk resides at the intraday November low around 9,574. Watch for any sustained close beneath 9,640 to open a deeper pullback.
DAX
The DAX gapped higher earlier in the week but has since drifted lower toward the 200-day moving average. The uptrend line from April has already been breached, and the key level to monitor is the 200-day line around 23,400. Remaining below the 50-day (just under 24,000) leaves the risk of a test of that 200-day average.
Dow
The Dow made a decent attempt to reach the top of its rising channel from July with a longer-term target near 49,300. For now the market is wrestling with the combination of the 50-day moving average and the lower edge of the channel around 46,500. Failure to sustain momentum through the 48,000 area after that recent bull trap will keep downside risk elevated.
Cryptocurrencies
Bitcoin
Bitcoin has slipped below the key 98,000 level and RSI has been failing under neutral 50, signalling lost momentum. That raises the possibility of a move toward the previously discussed support area near 93,000 while daily closes remain below 98,000.
To negate this rolling over scenario, a clear push back above roughly 103,000–104,000 on a sustained basis would be required.
Ethereum
Ethereum looks vulnerable to a retracement toward the channel floor near 3,030. The second uptrend line from April has been broken and the market is back below the 200-day moving average around 3,450. While below that 200-day average, expect downside risk to remain elevated.
Gold
Gold is consolidating at relatively healthier levels and is back above prior resistance near 4,150. If it stays above that area the next upside targets are record highs toward 4,400, with a best-case push toward 4,600 on the November resistance projection.
On the downside, a pullback to around 4,000 or the 50-day moving average near 3,940 would be the likely hold points for buyers to emerge.
Selected small caps
Below are short takes on the specific names discussed, with the most relevant technical levels and timeframes.
Alkemy Capital
Shares are consolidating above previous resistance around 265p. If buyers remain in control, expect a retest of the mid-range highs near 325p, and possibly the top of the channel toward 360p by the end of next month.
Cadence Minerals
Momentum conditions are improving. The RSI is back above neutral 50 and the shares sit above a sharply rising 50-day moving average and the August uptrend channel. Keep a close eye on support near 3.12p. Staying above that opens the path to the top of the channel of 6.70p.
Empyrean
This stock has displayed a stronger pattern of climbing and holding gains. Initial upside targets are around 0.17p, with a secondary target near 0.34p by the end of next month if the shares can break above recent resistance close to the March highs. A decisive end-of-day close above immediate resistance would accelerate the move.
Ingenta
Ingenta is in a positive consolidation close to its highs. The short-term target remains around 101–102p by the end of the month while the stock stays above the near-term support near 90p. The RSI remaining above neutral 50 is a useful confirmation of strength.
IP Group
IP Group has carved out a rising trend since April. The 50-day moving average sits near 56p, and the top of the channel points toward about 72p by the end of next month. Consolidation above the rising 50-day line suggests a fresh leg higher is possible.
Incanthera
Progress here has been gradual but constructive. The 50-day is now rising and recent candles are positive. Look for the 200-day line target near 5.5p by the end of the month, which also sits just above the falling channel’s upper edge. Upcoming product launches and sales updates will be catalysts to watch.
Jangada
Shares have pushed toward the top of a broadening triangle. An initial target sits around 1.5p, with the upper parallel of the triangle pointing as high as 2.25p potentially by the end of next month.
MicroSalt
Recent contract news helped the shares gap through the rising 50-day moving average and lift RSI above neutral 50. A clean end-of-day close above the 200-day line near 63p would open the way toward the recent highs around 73p and the top of the range nearer 90p. Support to keep an eye on sits at approximately 60p.
Panthera
Panthera is consolidating at higher levels and currently holding above the first target near 23p. An end-of-day close above that level would project a move toward about 33p by the end of next month. Staying above the key support at 20p keeps the bullish case intact.
Key takeaways and what to watch next
- Moving averages matter: Daily closes below the 50-day and 200-day moving averages are amplifying downside risk across several markets.
- RSI readings: Multiple failures under neutral 50 in larger markets like Bitcoin and some equities suggest momentum is waning until proven otherwise.
- Support and resistance: Keep the levels above in mind as clear decision points. Sustained movement beyond these levels will largely determine the next directional leg.
- Small-cap catalysts: Company-specific news, product launches and contract wins will be the key drivers for the small-cap names mentioned.
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.
