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, Alien Metals, Audioboom, Bay Capital, Boohoo, European Metals, Genedrive, IntelliAM, MTI, Revolution Beauty, Shield, Valereum, ValiRx, and WeCap.
The FTSE 100 is flirting with much higher levels and looks technically constructive. The DAX is muddling along between its 50 and 200-day averages. Bitcoin and Ethereum have staged rebounds, but key resistances remain. Gold is finding support and could head higher if it clears near-term resistance. On the smaller end, several bulletin board names are forming clear technical setups worth watching for potential continuation trades.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices
FTSE 100
The FTSE 100 is tracking a clear rising channel that has been in place since February. A recent break of a neckline around 9,590 set up an initial target near 9,750, which mirrors the resistance the index saw on the way up in October. Both the 50 day and 200 day moving averages are rising, with the 50 day near 9,553. The RSI sits above neutral at about 56, suggesting upward momentum.
Near term targets: 9,750 then a psychological handle at 10,000 if the channel high holds. The key downside floor is the June support line near 9,500. Use that area as a risk level for any bullish thesis.
DAX
The DAX looks quiet and sideways. Price is currently sandwiched between the 50 and 200 day averages, roughly trading between 23,000 and 24,500. Immediate resistance sits just below 24,000, while support hovers around the 200 day near 23,500 and the channel floor near 23,000.
A clean break above the line running through about 24,200 would be the technical trigger to target around 26,300, but expect that to take longer, perhaps into late January rather than December.
Cryptocurrencies
Bitcoin
Bitcoin has staged a decent rebound from the recent low around 80,500. That shows buyers are stepping back in, but there are clear resistance zones to overcome. Near term resistance is around 93,000, with a trend line breakout necessary to confirm a fresh bullish leg at about 95,000.
Key supports are the March uptrend near 87,000 and the lower channel floor from summer 2024 near 76,000. If price holds in the 75,000 to 80,000 support zone, the market can build a more sustainable recovery. If that fails, a deeper leg lower is possible.
Ethereum
Ethereum has been battling the 3,000 level. It dipped to about 2,622 and then rallied, but resistance at the early November area near 3,076 and the zone around 3,100 remains meaningful.
Technical signals to watch: a break back above the RSI resistance near 42 and a move above the October resistance near 3,100. Only a convincing break above the 50 day moving average area, near 3,518, would signal a stronger push higher.
Gold
Gold is enjoying higher-level support and is above a rising 50 day moving average. That combination is one of the more bullish classical setups in charting terms.
Immediate resistance sits around 4,180. A daily or weekly close above that opens a route to about 4,600, potentially as soon as the end of next month. Conversely, a close back below the 50 day, near 4,020, would increase the risk of a drop toward the late October support near 3,880.
Bulletin board movers to watch
Several small cap and AIM names are showing clear technical patterns. Below are concise notes on each setup and the levels to watch.
- Alien Metals: Showing a revival with an uptrend from March. The important short term level was around 0.09. Above 0.10 the downtrend from the end of summer looks broken and the stock could move toward 0.15 in the coming month. Key stop: keep it above the uptrend line and the 0.09 area.
- Audioboom: Price has cleared a resistance line in the region of £6 and reclaimed the 50 day moving average. The current outlook is constructive with a target area toward about £9 while the 50 day holds.
- Bay Capital: Recently broken above a falling 200 day moving average at around 5.3p. If the breakout holds there is room to the top of the rising channel near 9.6p.
- Boohoo: Broke above the 200 day moving average after a gap through the mid teens. Important levels are the gap floor around 18.75p and the main resistance at 21p. A sustained move above 21p could target around 40p.
- European Metal Holdings: Reached the top of a channel and a trading range toward about 22p. The stock needs to stay above roughly 18p to maintain the upside case.
- Genedrive: Rising trend channel with a top around 1.6p. The main hurdle is the 200 day moving average near 1.1p. The floor of the channel and an uptrend RSI help the bullish case, but a break under the channel would be a negative signal.
- IntelliAM: Bounced off an uptrend line from May and sits above the 50 day moving average near 114p. Target on the current push is around 160p, a narrow new high versus August peaks.
- MTI Wireless: Consolidating in a mid move, holding above the 200 day moving average at about 47p. A move above that support points to a target near 61p over the next month.
- Revolution Beauty: Cleared the 50 day moving average decisively for the first time in months. Key support to hold is around 2.8p. While above that, a move toward the rising channel top near 3.8p is plausible in the next few weeks.
- Shield Therapeutics: Making steady progress. Recent broken resistance near 9.3p now acts as support. The updated channel target is about 12p.
- Valerium: Valerium has reacted positively to corporate news. The share price cleared an initial November resistance in the low teens of pence and the early target sits around 14p with a best case near 27p in the near term.
- ValiRx also has a constructive gap fill dynamic; above the gap floor at about 0.27p, there is scope toward about 0.41p.
- WeCap: A tricky one because of lock ups and a large UK holding discount. Technically the stock sits in a rising channel and the current channel target is near 4.75p while the 50 day moving average is around 2.66p. A daily close above the 50 day would be a useful short term signal.
Practical checklist for these setups
- Confirm the close — prefer daily or weekly closes above the key moving averages or resistance lines, not just intraday probes.
- Watch RSI — an RSI above 50 is a useful follow through reading for many of these names and indices.
- Use the channel floor as stop — for channel trades use the lower channel line or a clear support level as the stop area.
- Size positions carefully — bulletin board stocks can be volatile. Keep position sizes manageable and plan exits.
- Look for volume confirmation — breakouts with increasing volume are more reliable than thin moves.
Final notes
There is a mix of quiet ranges and selective breakouts across markets. The FTSE 100 looks the most enthusiastic for further gains, while Bitcoin and Ethereum need to clear specific resistances for a cleaner bullish narrative. Gold is a straightforward technical play if it can close above immediate resistance.
On the small cap side, the setups are classical. They will either reward patience and a clear confirmation close or they will fail quickly. Keep the checklist handy, watch the key levels mentioned above, and respect risk management.
More updates will be available over the coming sessions as these charts 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.
