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, Ajax, Eurasia, Ferrexpo, GCM, ITM, Upland, WeCap, Wizz Air.
Markets probed lower this week, testing several important trend floors. A few clear themes stand out: indices have room to fall before becoming oversold, cryptocurrencies look deeply oversold, and several UK small caps are showing constructive breakouts above key moving averages. Below, I run through the levels that matter and what to watch next.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
FTSE 100
The FTSE tested the lower boundary of the rising channel that began in June, briefly dipping below the 9,430 area before bouncing. The immediate technical objective is to reclaim the 50-day moving average near 9,510. Doing so would make this probe look like the bottom of the move rather than the start of something deeper.
Key levels:
- Support: 9,430 (recent low), then October support around 9,276.
- Resistance: 9,510 (50-day MA).
RSI sits around 40, which means there is still room to move lower without becoming oversold. A break back below 9,430 opens a test of that October band near 9,276.
DAX
The DAX continues to look softer than the FTSE. The April gap near the mid-20,000s is acting like a magnet for price action, and price has managed a bounce above that area for now. The 200-day moving average around 23,466 is the next meaningful resistance and will be a tough level to clear without stronger momentum.
Watch whether the gap area holds as support or becomes resistance next week.
Dow Jones
The Dow is trading near the bottom of its rising July channel. Failure at the 50-day line has left the market vulnerable to further downside. An old October support sits near 45,500, and a deeper floor around 45,000 (September support) would be the next meaningful zone if selling continues.
Initial resistance: 46,600 (50-day MA). RSI around 36 still allows for more downside.
Cryptocurrencies
Bitcoin & Ethereum
Cryptos are the weakest area right now. Bitcoin has already breached the March “fear” line around 86,000 and is flirting with the lower edge of its longer-term rising channel. There’s a realistic prospect of a test of the mid-70,000s (about 75,000–76,000).
Bitcoin RSI 21 — deeply oversold, more oversold than at several prior pullbacks this year. For long-term oriented traders, a move into the mid-70,000s could present a high-conviction buying opportunity once momentum stabilises.
Ethereum has slipped below the hoped-for 3,000 level, also breaking the short-term trend floor near 2,950. A successful regroup would require reclaiming that 2,950 area. Below that, June support near 2,120 becomes the next downside target. Ethereum RSI 26.
Gold
Gold is holding a constructive position, bouncing above a rising 50-day moving average and sitting on top of a prior April rising trend channel near the $4,000 area. The short-term pattern favours a zigzag back up towards $4,200 if $4,000 holds.
Downside risk is the late-October support near $3,880. Longer-term upside projection puts resistance toward $4,600, though that level now looks more likely toward the end of January rather than immediately.
UK small caps and watchlist
Several UK names show interesting technical setups. Below are the key levels and near-term targets I’m watching.
Ajax
Trading inside a rising channel, Ajax is holding above both rising 200- and 50-day moving averages. Initial target is 7p, with a best-case resistance projection toward 12p into late January based on a prior May resistance line.
Eurasia
Momentum has turned constructive. The shares pushed through a rising 200-day moving average and the 50-day is starting to slope up — a potential precursor to a golden cross. Minimum upside target toward 6.3p by the end of next month, with a key 200-day level to hold around 4.3p.
Ferrexpo
Ferrexpo is battling the 200-day line around 57.5p. An end-of-day close above translates into an early target of 66p. The 50-day turning higher and an RSI bounce back toward neutral would support further gains.
GCM
GCM has bounced off the floor of a rising channel and is pushing through the 50-day moving average near 6p. A move through here points to a target around 9p by the end of next month (top of the rising channel from March).
ITM Power
Good news flow helped ITM bounce from the floor of a rising channel around 70p. Bulls want a clear close through the 50-day moving average at 77p and an RSI back above neutral 50 to confirm a trend continuation. Upside target around £1.10 into late January or February if momentum holds.
Upland Resources
Upland has quietly continued higher and has now hit a third target near 2.75p. With little resistance until a gap up toward 4p, a steady rise to a 3–4p range by the end of next month is a reasonable expectation while the 50- and 200-day averages remain supportive.
WeCap
Despite the market keeping pressure on the share price, a conservative upside valuation on the numbers suggests a re-rating is possible. While above the 50-day moving average (2.6p), an initial target of 4p by the end of next month is a base scenario.
Wizz Air
Wizz Air looks like it could be forming a broadening triangle base. It has cleared the 50-day moving average above £11.23, and a sustained close above that level opens a run toward £13 by the end of next month. The recent gap-up, gap-fill, and bounce is a healthy sign of positive momentum.
Short summary and what to watch next
Markets are at a crossroads. The FTSE and major indices have room to decline before becoming oversold; reclaiming the 50-day moving averages is the clearest sign of a failed breakdown. Cryptocurrencies are deeply oversold and may offer attractive entries if momentum stabilises near the mid-70,000s for Bitcoin and the 2,950 area for Ethereum.
Several UK smaller-cap names are showing constructive technicals — watching how they behave around the 50- and 200-day moving averages will tell you whether the recent strength has legs. For each name, the key is clear: hold the rising trend floors and reclaim the 50-day, and the next targets become attainable.
Levels to keep on your radar
- FTSE 100: 9,430 (support), 9,510 (50-day MA), 9,276 (October support)
- DAX: April gap area (around 22,600), 200-day MA ~23,466
- Dow: 45,500 (October support), 45,000 (September support), 46,600 (50-day MA)
- Bitcoin: 86,000 (breached), mid-70,000s potential floor, RSI ~21
- Ethereum: 2,950 (short-term pivot), 2,120 (June support), RSI ~26
- Gold: $4,000 (short-term floor), $4,200 (near-term upside), $3,880 (risk)
Monitor those levels, watch how price reacts to the 50- and 200-day moving averages, and let decisive closes guide your positioning. More updates will follow as price action develops.
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.
