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, Ascent, Bradda, Blencowe, Cleantech, Chesterfield, Eurasia, Eco Buildings, Ferrexpo, Hydrogen Utopia, Mila, Rockfire, Zenith.
We’re in what is traditionally the “trash crash” season, and the evidence is on the charts — indices testing trend-channel floors, RSI readings slipping below neutral, and a handful of small caps showing bright spots. Below I walk through the major indices, cryptocurrencies, gold, and the small-cap names I track, with key support, resistance and target levels to watch over the coming days and weeks.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Market overview
The common theme today is defensive price action: major indices have pulled back to the lower edges of rising trend channels established since June. Momentum indicators like the RSI are under pressure in several markets — when RSI falls below neutral 50 on a close, it increases the risk of further weakness. That said, a handful of names and gold are still outperforming and offer clear levels to watch.
FTSE 100
The market has pulled back to the floor of the rising trend channel from June, roughly around the 50-day line at 9,280 . So far we got a marginal bounce off that floor. The immediate risk if we stay below RSI 50 on a close is a slide toward September support near 9,180 . To reclaim momentum we need a lift back above the prior support-turned-resistance around 9,390 .
DAX
The DAX is similarly testing the floor of its rising trend channel (around 23,700 ). A failure here would expose the 200-day line for the first time since April, near 23,000 . Momentum is weak while RSI remains below 50. A clean end-of-day close back above the 50-day line (24,000) would go a long way to stopping the bleed, but given the gap lower this week that remains a stretch. Ideally we stay at or above 23,600 .
Dow Jones
The Dow is sitting close to its 50-day line at about 45,600 , which is a constructive sign if it holds. Last week’s support around 45,500 is the critical level — if we hold it this pullback could be short-lived. The negative signal is the RSI dropping below neutral 50; a rebound into the low 50s and then a failure would act as a sell signal. Prepare for a worst-case test near 44,800 if last week’s support fails.
Cryptocurrencies: Bitcoin and Ethereum
Crypto looks more precarious today. Bitcoin has broken down through the floor of its rising trend channel and beneath the 200-day moving average ($107,00) — that opens up a likely test of the June support area around 98–100k . To stabilise the outlook Bitcoin needs to get back above 107k (the August–September support). The RSI failure below 50 was an early giveaway for the breakdown.
Ethereum’s chart is worse off in the near term. It fell out of its rising trend channel beneath $3,950 , putting the August support near 3,340 in play and potentially the 200-day line around 3,166 if selling persists. Interestingly, Ethereum remains above its 200-day line while Bitcoin has slipped below, so relative performance dynamics are worth watching.
Gold
Gold continues to outperform and is tracking toward the new best-case projection — a November resistance-line target near $4,500. While above the prior target line ($4,180), my expectation is for further upside into the month-end if the current strength continues.
Selected small caps
Today’s market sell-off makes extracting individual winners harder, but several names still look constructive on their charts. Below are key observations, levels and upside targets.
- Ascent Consolidating above a rising 50-day line with RSI holding above neutral 50. I’m looking for a retest of last month’s resistance and a move up toward 8p by the end of next month while the 50-day and RSI remain supportive.
- Bradda After years in the wilderness the shares are showing a big reversal and have rebounded above a rising 50-day line (1.08p). The target is the resistance projection near 3p by the end of November, with an intermediate target around 1.75p. Lithium names are generally looking healthier and helping the sector tone.
- Blencowe Momentum is pushing toward the 8p target (our third target) with the main long-term resistance at 9p. Best-case scenario would see Blencowe test9pby the end of next month.
- Cleantech Back above the July–August support around 5.25p. While above the 50-day line (5.3p) upside toward the top of the range around 7.5–8p is possible by the end of next month. Note the strong price action: several recent sessions opened at the low and closed at the high despite broader weakness.
- Chesterfield Delivered a decent result and has cleared the initial target near 1.17p. Next level to watch is around 1.75p, and if momentum continues we could test the main resistance 1.75p–2pby month-end.
- Eurasia Possibly benefiting from developments in the Russia–Ukraine situation. The share price trades in a falling trend channel; the top of that channel near5.4p is the target while we remain above the 50-day line (3.75p).
- Eco Buildings Still running toward the top of the triangle breakout target with a secondary objective around 9.25pand a higher target near 14p if strength persists. The main resistance band to clear is in the 14–15parea.
- Ferrexpo has bounced above a rising 50-day line. The top of the channel sits near 64p, and the post-February high around 80–87p could be an extended target if the rally gathers steam.
- Hydrogen Utopia Surprisingly slightly up on a weak day with RSI holding around the neutral 50 level. The 200-day moving average is the key hurdle near 1.7p. If it clears that, the next target is roughly 2.4p while the rising 50-day (1.3p) remains the immediate support.
- Mila The rebound continues with the shares approaching 1.75p, one of our targets. Critical support is the old June resistance around 1.25p — staying above that keeps the bullish case intact. Next upside area to watch would be the old July 2022 support turned resistance near 2.7p.
- Rockfire Price bounced off a rising 50-day line and is trying to clear the tricky 0.25p area. Above that I’d expect a sharp move toward 0.35p, but a return of RSI above 50 is the missing piece to confirm momentum.
- Zenith Energy An arbitration update helped the shares; we’ve bounced above the initial October support (3.44p) and are aiming for the top of the range and the falling trend-channel ceiling around 4.5p by the end of next month. Getting back above the 50-day (3.75p) is key.
How I’m positioning and what I’m watching
Short-term, my defensive assumption is that indices remain in consolidation with downside risk while RSI readings stay below neutral 50. For traders that means watching the lower edges of the rising channels and 50/200-day moving averages closely for support or failure.
On the long side, I’m focusing on small caps that have clear technical triggers: above-the-50-day-line action, RSI recovering above 50, and clean breakouts through short-term resistance. Gold remains the standout macro outperformer and has scope to push toward the 4,500 target if momentum holds into month-end.
Conclusion
The overall picture is mixed: major markets are testing important technical floors and need to hold key moving averages to avoid deeper weakness, while several small-cap names and gold offer clear upside targets if their technical support levels hold. I’ll be watching how RSI and the 50/200-day moving averages behave over the next sessions — they’ll tell us whether this is a short-lived pullback or the start of something more significant.
For the full chart run-through and the live commentary that accompanies these levels, check my latest Bulletin Board Heroes update. More updates over the weekend.
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.
