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, Andrada, Alkemy, Astrid, Celsius, Fragrant Prosperity, Genedrive, Ironveld, Kefi, Kistos, Mkango, Panthera, Warpaint.
Happy Halloween. Quick, conservative market and stock chart run through as we close out October. Below, I cover the main indices, crypto, gold and the small caps I am watching. Targets are modest and conditional. As always, price, trend lines and RSI are the key guides.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Major indices
FTSE 100
The FTSE has come off its recent highs and is trading down about half a percent. Price is still trading inside the rising trend channel that began in June. The top of that channel sits near 9,730, which was a previous target. Key support to hold is the October resistance turned support around 9,577. While we remain above that level I am looking for a conservative upside target of 9,830, a projection of the red May resistance line as a near end of November objective. A break below 9,577 would be negative and open the way lower.
DAX
The DAX has been range bound for a while and the falling 50 day is not helpful, but we are finding support around the 24,000 area at or just below that 50 day line. As long as we hold 24,000 I am looking for a push back towards record highs, first to about 24,800 and then potentially as high as 26,000 by the end of next month. On the downside the floor of the rising channel from April around 23,800 should act as support. If momentum weakens and RSI rolls down through neutral 50 after multiple failures in the low to mid 50s, a stronger sell off could target the 200 day line in the 23,300 area.
Dow
The Dow is tracking higher towards the top of the May 2024 rising trend channel near 48,300. That remains the end of next month target if the trend continues. Initial downside support sits around the October resistance near 47,000.
Cryptocurrencies
Bitcoin
Bitcoin has disappointed by testing the floor of its rising trend channel that began in March. Yesterday may have offered a bounce, with the low around 106,106, but price is still close to the channel base. For now I see a range between roughly 106,100 and resistance near 116,000. A decisive break above 116,000 would open the path to about 130,000 by the end of next month. The RSI remains below neutral 50, so the risk is that we roll through the channel floor and retest June support near 98,000, which would be ugly for Bitcoin treasury strategy stocks.
Ethereum
Ethereum had been holding an uptrend line from April until recently and is now under that line. The April uptrend sits about 3,850. Immediate downside to watch is the channel floor from August near 3,520. Until we break back above that April uptrend, the RSI at about 42 gives scope for further downside. On the upside the 50 day near 4,200 is the main hurdle to clear.
Gold
Gold is trying to tell us whether a near term top is in place. The old target area around 3,960 has become support. While we stay above that level I am watching for resistance on the way up near 4,160 even if there is a pullback afterwards. The RSI has pushed back above neutral 50, which increases the chance of at least a partial retest of record highs towards 4,400.
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.
