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, Avacta, Empire, Guardian Metal, Greatland, Hvivo, Strix, Oracle, Pulsar, Quantum Helium, Seraphim, and Vast.
Markets are in a familiar end-of-year rhythm: modest momentum, a touch of rally optimism and a careful eye on trend lines and moving averages. Several major indices are flirting with meaningful resistance while pockets of the junior market are attempting recoveries after sudden rug pulls. Below is a practical technical read on the indices, cryptocurrencies, gold and a selection of small caps worth watching in the coming weeks.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
FTSE 100 — testing the 10,000 narrative
The FTSE 100 is nudging the psychological 10,000 mark and remains inside a rising trend channel that stretches back to February. Recent consolidation above initial December resistance near 9,770 is constructive and the 50-day moving average (around 9,653) is rising — a bullish sign.
Targets and risk:
- Near-term target: 10,100 at the top of the rising channel.
- Support: 50-day at 9,653; a sustained break below that would weaken the short-term case.
- Momentum read: Multiple RSI rebounds above 50 suggest the bulls are in the box seat for more upside.
DAX — slow, sideways, but ready to catch up?
The DAX has been largely rangebound since May. Current resistance from October sits near 24,050. Above that, the path clears toward recent record highs ~24,700 and, in a best-case catch-up scenario, up to ~26,200 over a longer timeframe.
Key points:
- Near support: 50-day line just under 24,000 — we don’t expect prolonged trading below this unless momentum collapses.
- Downside floor: 200-day around 23,600 — the lowest reasonable expectation if bears take over.
- Technical tone: An RSI 50 rebound is an encouraging leading sign for further gains if the market decides to move.
Dow Jones — edging up the channel
The Dow is tracing a rising channel and attempting to recover recent minor pullbacks. The channel top sits around 49,000 and a break beyond could accelerate towards earlier resistance near 51,200.
Watch for:
- Upside target: 49,000 initially; then 51,200 if momentum improves.
- Support: the rising 50-day line — a likely stopping point for a typical pullback.
- Momentum: RSI support above neutral 50 and a potential third RSI rebound would favour a breakout attempt.
Cryptocurrencies — Bitcoin and Ethereum
Bitcoin
Bitcoin remains under the October resistance line, now around 90,000. Price has been finding support in the mid-80s but remains below the critical RSI 50 territory, so bears still have a say.
Key levels:
- Resistance: ~90,000 (October line).
- Support to watch: the main October support line near ~81,000 if the market has to retest lower levels.
- Momentum: RSI below 50 suggests the breakout case is not yet confirmed.
Ethereum
Ethereum is stuck in a battleground around 3,000. There’s a helpful uptrend from April near ~2,800, which has acted as a springboard.
Outlook:
- Short-term upside: 50-day near 3,160 is the first objective.
- Downside risk: RSI sitting below neutral (around 44) means a retest of November support near ~2,622 is possible if momentum fades.
Gold — constructive setup for bulls
Gold is holding above recent resistance-turned-support near 4,270 and is supported by an uptrend from October. The technical backdrop sits well for further gains into the New Year.
Targets and risk:
- Target: the November 2024 resistance projection around 4,635 by the end of next month.
- Support: don’t expect anything lower than the 50-day (~4,140) in the current constructive run; an uptrend line sits slightly above that at ~4,170.
Stocks in focus — recovery plays, surprises and momentum leaders
The small-cap space has been lively: a couple of rug pulls have punished bulls, but there are notable recoveries and continued momentum stories among the junior miners and AIM names.
Avacta
Recently dropped sharply despite positive headlines. The share price fell through the 50-day and RSI uptrend, but a rebound above the rising 50-day (49p) could turn today’s dip into a buying opportunity. Caution: triple failure around 80p looks ominous until proven otherwise.
Empire Metals
After a multi-month pullback the shares look to be rebuilding. Director buying in the 30p area is supportive. Resistance sits near current levels with the uptrend line around 35p. RSI is positive (56) — recovery mode while above the trend line.
Guardian Metal
A standout performer this year and still showing momentum. Riding a rising trend channel from February with two strong gaps higher this week. Initial resistance near 122p, and a potential move towards 190p over a two-to-three month time frame if momentum continues.
Greatland Gold
Another multi-target winner that has surpassed earlier objectives. Broke through the pound zone and immediate targets are now out near £6 by end of January, or conservatively by end of February. The consistent gaps up indicate strong rerating.
Hvivo
Called a recovery early and the shares have validated that view. Initial target around 6.6p has been met and the 200-day moving average near 10.7p becomes the next logical objective — potentially reachable well before the end of next month if strength continues.
Strix Group
Recent news caught the market by surprise, producing a volatile reaction. The chart suggests upside potential to 60p while the rising trend base and follow-through will determine how quickly that target is tested. Expect choppy trading as the dust settles.
Oracle Power
Trading in a range around 0.04. A close above 0.046 would be a useful signal, with the 50-day (~0.038) as a key support. A successful breakout could see a move back into the 0.06 area early in the new year.
Pulsar
Consolidated in the 35–40p zone with an RSI 50 rebound — technicals hint at a bounce. An end-of-day close above 40p would open the door to a run toward the upper 40s, perhaps in January, supported by decent news flow.
Quantum Helium (formerly Mosman)
Clean consolidation above a rising 50-day moving average and an RSI rebound. A close through October resistance near 0.036 would be a positive signal with further upside to the 0.05–0.055 zone possible by the end of next month.
Seraphim
Space-focused small cap with a rising trend channel from July and the top of that channel around 110p. Remaining above recently broken resistance (~94p) keeps the early January target intact. Market cap remains small relative to larger aerospace peers, which leaves room for rerating if growth stories progress.
Vast
An unexpected sequence of strong candles suggests a potential turnaround. If the shares can stay above recent broken December resistance near 0.1p, the next targets are the 50-day moving average and the top of the falling channel around 0.016p in the next two to four weeks. Watch for continuation of the bullish candle pattern before committing.
How to use this technical map
- Use the 50-day moving average as a first-line health check for trend direction.
- RSI rebounds above 50 often lead price; look for confirmation with price closing above key resistance lines.
- Treat sudden rug pulls as warning signs. Successful recoveries typically need price to reclaim the 50-day or a prior clear support level.
- Set realistic targets and timeframes: short-term breakouts can extend into the next one to three months, while major trend shifts take longer.
Markets will likely remain eventful over the weekend and into the start of the new year. Keep an eye on the levels above, manage risk carefully and let confirmed technical signals guide entries rather than headlines.
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.
